Hold Mahindra Lifespace; target of Rs 430: ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICI Direct's research report on Mahindra Lifespace

Mahindra Lifespace Developers (MLD) recorded better sales volume growth at 12% YoY to 0.35 msf valued at Rs 215 crore Standalone net sales declined 16.1% YoY to Rs 121.4 crore but was better than our expectation of Rs 79.2 crore EBITDA margins contracted 405 bps YoY to 7.1%, lower than our estimate of 11.4% due to higher employee costs PAT grew 16.8% YoY to Rs 15.4 crore (better than our expectation of Rs 14.7 crore) largely led by higher-than-expected topline growth On a consolidated basis, the topline declined 26.0% YoY to Rs 137.4 crore while its bottomline de-grew 28.4% YoY to Rs 19.4 crore.

Outlook

We like MLD given its strong parentage, management’s focus on improving return ratios through strategic partnerships with IFC & HDFC Capital & comfortable balance sheet. Additionally, it is currently trading at attractive valuation of 0.9x FY20E P/BV. While there are hints on a ramp up in residential project portfolio, we would like to see more improvement & also track progress in industrial cluster business. Hence, we maintain our HOLD rating with a target price of Rs 430/share.

For all recommendations report, click here

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.

Read More