Buy Mahindra Lifespace Developers, target price Rs 550: Motilal Oswal

Motilal Oswal has buy call on Mahindra Lifespace Developers with a target price of Rs 550. The current market price of Mahindra Lifespace Developers is Rs 474.95.

Time period given by analyst is one year when Mahindra Lifespace Developers Ltd. price can reach defined target.

Mahindra Lifespace Developers Ltd., incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 7317.94 Crore) operating in Real Estate sector.

Mahindra Lifespace Developers Ltd. key Products/Revenue Segments include Income from Project Development, Income from Sale of Commercial Flats, Shops & Plots and Project Management Fees for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-06-2022, the company reported a Consolidated Total Income of Rs 117.34 Crore, down -24.31 % from last quarter Total Income of Rs 155.02 Crore and down -23.90 % from last year same quarter Total Income of Rs 154.20 Crore. Company reported net profit after tax of Rs 12.88 Crore in latest quarter.

Investment Rationale
Excluding its FY23E net debt of INR3b (at MLDL’s share), the brokerage arrives at a NAV of INR85b. Applying zero discount to its NAV, it arrives at a TP of INR550 per share, a potential upside of 17%.

Promoter/FII Holdings
Promoters held 51.33 per cent stake in the company as of 30-Jun-2022, while FIIs owned 10.6 per cent, DIIs 18.92 per cent.