Motilal Oswal's research report on Mahindra Lifespace
Mahindra Lifespace (MLDL) posted 32% YoY growth in bookings to INR4b (down 34% QoQ on high base) driven by strong response to launches and continued momentum in ongoing projects. Bookings in 1HFY23 were over INR10b similar to what it clocked in FY22. Sales volumes rose 21% YoY to 0.45msf. MLDL launched 0.6msf of projects/phase including the launch of new project Nestalgia, Pune that clocked bookings of INR1.4b (73% of launch inventory). In 2HFY23, MLDL is planning to launch projects/phases with GDV of INR10b and with INR15b of ongoing inventory, we believe, the company can replicate its 1HFY23 performance in 2H. P&L performance – Revenue was 39% below our estimate due to delay in completion of Vicino, Mumbai. MLDL posted an EBITDA loss of INR0.4b owing to continued investment in land. Despite INR0.3b of contribution from JV projects, its post-tax loss stood at INR75m v/s profit of INR65m in 2QFY22.
Outlook
We believe continued strong momentum in project additions at a targeted GDV addition of INR30-40b will provide growth visibility and is a key upside trigger for the stock. We reiterate our BUY rating with an unchanged SoTPbased TP of INR550, indicating 36% upside potential.
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