Buy Mahindra Lifespace Developers, target price Rs 325: ICICI Direct

ICICI Direct has buy call on Mahindra Lifespace Developers Ltd. with a target price of Rs 325. The current market price of Mahindra Lifespace Developers is Rs 279.85.

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 4314.51 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-2021.

Financials
For the quarter ended 30-06-2021, the company reported a Consolidated Total Income of Rs 154.20 Crore, up 165.31 % from last quarter Total Income of Rs 58.12 Crore and up 598.05 % from last year same quarter Total Income of Rs 22.09 Crore. Company reported net profit after tax of Rs -15.48 Crore in latest quarter.

Investment Rationale
MLD’s share price has grown at ~16% CAGR over the past five years (from ~Rs 134 in September 2016 to ~Rs 281 levels in September 2021). The brokerage likes MLD given its strong parentage, the management’s focus on expanding its overall scale of operation and a comfortable balance sheet. The new land purchases are expected to enable it to scale up its residential business. The change in management and execution has started to show initial signs of transformation.

Promoter/FII Holdings
Promoters held 51.5 per cent stake in the company as of March 31, 2021, while FIIs held 13.7 per cent, DIIs 14 per cent and public and others 20.8 per cent.