Motilal Oswal is bullish on Mahindra Lifespace Developers and has recommended buy rating on the stock in its July 23, 2010 researh report.
"Mahindra Lifespace Developers (MLL) has a sound business model, a healthy balance sheet and no land outstandings. Our SOTP value for MLL is Rs 552 per share Chennai SEZ at Rs 163 per share, Jaipur SEZ at Rs 170 per share, residential vertical at Rs 160 per share, and other rental assets at Rs 60 per share. Our valuations do not include a 52-acre Thane project, a 50-acre commercial project at Chennai SEZ, and two planned new SEZs/industrial parks in Chennai and near the Mumbai-Pune Expressway (for which an advance of Rs 1.3 billion has been paid), and recent MOU for 1.8msf in Pune and JDA for 1msf in Hyderabad. The stock trades at 1.7x FY12E adjusted book value of Rs 287 and at 10% discount to its SOTP value. Buy," says Motilal Oswal research report.
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