Sri Lotus (LOTUSDEV)

FairStock Score: 55/100 — STEADY

Score breakdown: P/E: 0/3 · ROCE: 2/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Low debt/equity of 0.08 indicates a conservatively financed balance sheet.
• ROCE of 37.06% shows strong capital efficiency relative to the sector.
• Sales growth of 92.75% and profit growth of 36.20% reflect strong momentum.
• PEG ratio of 0.47 suggests the growth is not fully priced in.
• Promoter holding of 81.86% aligns management interests with minority shareholders.

Concerns

• P/E of 30.38 and P/B of 3.83 leave little margin of safety.
• Zero dividend yield means all returns depend on future growth.
• Real estate is cyclical; 92.75% sales growth may not be sustainable.
• FairStock Score of 55/100 and being well below the 52-week high of ₹206.75 indicate investor caution.

AI Analysis

Let me look at Sri Lotus as a business, not as a ticker. It operates in residential and commercial projects, a sector that demands capital discipline and execution skill. The financial scorecard shows a debt/equity of 0.08, so the company is not leveraged to the hilt. ROCE at 37.06% is striking; it suggests management is generating strong returns on capital employed. Latest quarter sales came in at ₹224 Cr and net profit at ₹70 Cr, implying a healthy margin, though I would want consistency over several quarters. Growth figures cannot be ignored: sales grew 92.75% and profits 36.20%. A PEG ratio of 0.47 suggests that if this growth persists, the current P/E of 30.38 is not insane. But Graham taught me to treat growth estimates with humility. At ₹142, the market capitalizes this at ₹6,904 Cr, or 3.83 times book. That is not a bargain price. I am paying for future growth, and the 0% dividend means my return depends entirely on that growth and eventual reinvestment. Promoter holding of 81.86% does align interests, and a Piotroski F-score of 7/9 indicates decent fundamental health. Still, real estate is inherently cyclical. The 52-week range of ₹102.20 to ₹206.75 shows price volatility, and the FairStock Score of 55/100 labels it steady, not extraordinary. I would want to see a longer track record of converting sales into cash and maintaining margins. A fair company, a clean balance sheet, and high growth — but the entry price leaves little margin of safety.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer