Buy Mahindra Lifespace; target Rs 466: Firstcall Research
Firstcall Research is bullish on Mahindra Lifespace Developers and has recommended buy rating on the stock with a target price of Rs 466 in its December 10, 2012 research report.
December 13, 2012 / 16:55 IST
Firstcall Research is bullish on Mahindra Lifespace Developers and has recommended buy rating on the stock with a target price of Rs 466 in its December 10, 2012 research report.
"Mahindra Lifespace Developers Ltd named as ‘India’s Top 10 Builders’ by Construction World and CW Interiors for the second consecutive year. Mahindra World City has signed of an agreement with JCB India, to set up a manufacturing plant in 70 acres within Mahindra World City, Jaipur with an investment of Rs. 500 crores. Mahindra Lifespace Developers launched a new project of ‘Ashvita’ a premium residential project in Hyderabad. During the quarter, the company has launched its phase-I of Antheia project in Pune. The project will comprise 1400 residential units with saleable area of 1.60 mn sq ft. During the quarter the company Sale of residential units (MLDL + subsidiaries) is Rs. 862.50 millions. During the quarter, the company also acquired a land parcel in Alibaug under joint development basis to develop exclusive villas. Operating Profit and PAT of the company are expected to grow at a CAGR of 12% and 12% over 2011 to 2014E respectively.Mahindra Lifespace Developers Limited (‘Mahindra Lifespaces’ or ‘the Company’) is one of the leading real estate development companies in India, reported its financial results for the quarter ended 30th Sep, 2012. The second quarters of the company sales as well as profitability are decreased due to rising raw material costs.The company’s net profit decreased to Rs.314.10 millions against Rs.314.40 millions in the corresponding quarter ending of previous year, an decrease of 0.10%. Revenue for the quarter decreased 10.60% to Rs.838.30 millions from Rs.937.70 millions, when compared with the prior year period. Reported earnings per share of the company stood at Rs.7.69 a share during the quarter. Profit before interest, depreciation and tax is Rs.451.40 millions as against Rs.440.10 millions in the corresponding period of the previous year.Outlook and Conclusion- At the current market price of Rs.412.00, the stock P/E ratio is at 12.68 x FY13E and 11.58 x FY14E respectively.
- Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.32.48 and Rs.35.57 respectively.
- Operating Profit and PAT of the company are expected to grow at a CAGR of 12% and 12% over 2011 to 2014E respectively.
- On the basis of EV/EBITDA, the stock trades at 8.76 x for FY13E and 7.93 x for FY14E.
- Price to Book Value of the stock is expected to be at 1.34 x and 1.20 x respectively for FY13E and FY14E.
- We recommend ‘BUY’ in this particular scrip with a target price of Rs.466.00 for Medium to Long term investment," says Firstcall Research report.
Non-Institutions holding more than 90% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.To read the full report click on the attachment 
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