Buy Mahindra Lifespaces; target of Rs 521: HDFC Securities

HDFC Securities is bullish on Mahindra Lifespaces has recommended buy rating on the stock with a target price of Rs 521 in its research report dated April 26, 2023.

Broker Research

April 27, 2023 / 14:22 IST

Buy

HDFC Securities' research report on Mahindra Lifespaces

Mahindra Lifespaces Developers Ltd (MLDL) reported the highest ever annual presales of INR 18.1bn (+77% YoY), with volume at 2.2msf (+73% YoY). This was backed by robust launches of 3.19msf (+51% YoY). For FY24, nine project launches are planned with Kandivali, Bengaluru, one society redevelopment and Citadel Ph 2 as key launches. The GDV of these launches is estimated at INR 50bn with a large part front loaded (INR 25bn) in H1FY24. MLDL added INR 32bn worth of GDV and expects to add 35-40bn worth of GDV in FY24, backed by a robust business development pipeline of INR 55bn. Within IC&IC, the company leased 158 acres for INR 4.6bn (+53% YoY). This is near its FY25 target of INR 5bn for an annual lease.

Outlook

Given the tailwinds in the industrial business, the upcycle in the residential business, a robust balance sheet, a trustworthy brand image, and a robust business development pipeline, we remain constructive on MLDL and maintain a BUY rating, with NAV-based TP of INR 521/sh.

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