Mahindra Lifespace Developers top Nifty500 gainer on Q3 boost

Mahindra Lifespace Developers shares rallied more than 8 percent, making the biggest gainer in the Nifty500 on February 3 after the company turned a profit in the December FY23 quarter.

The stock closed at Rs 380 on the National Stock Exchange, the highest closing since December 7, 2022 and up 8.8 percent over the previous close.

The real estate and infrastructure developer recorded a consolidated profit of Rs 34.1 crore in the December quarter against a loss of Rs 7.51 crore in the previous quarter. The profit grew 37.2 percent from the year-ago period.

A healthy topline and narrowing of losses at operational level boosted profitability.

Consolidated revenue from operations for the quarter at Rs 186.9 crore grew 668 percent over the year-ago period and 168 percent from the previous quarter, the Mahindra Group company said an exchange filing.

Mahindra Lifespace had four residential launches–one each in Mumbai, Pune, Bengaluru and Chennai–in the December FY23 quarter.

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"Residential presales continue to be strong at Rs 451 crore for the quarter taking us to Rs 1,452 crore for the nine-month period. We foresee continued strength in residential demand ahead," Arvind Subramanian, Managing Director & CEO said.

On the operating front, the company narrowed EBITDA loss to Rs 11.42 crore from Rs 39.36 crore in the September quarter and Rs 38.80 crore in the year-ago period. EBITDA is earnings before interest, tax, depreciation and amortisation.

The stock formed a robust bullish candlestick on the daily charts with upper and lower shadows, with healthy volumes.

It has given a strong breakout of a long downward-sloping resistance trend line adjoining highs of September 12, 2022 and January 19, 2023, by having a gap up opening, indicating a positive mood.

It also climbed above 50 EMA (exponential moving average - Rs 370) and hit 100 as well as 200 EMA intraday. It traded well above the short-term moving averages (9 and 21 EMA) as well.