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 376.3.

Mahindra Lifespace Developers, incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 5811.28 Crore) operating in Real Estate sector.

Mahindra Lifespace Developers 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 30-09-2022, the company has reported a Consolidated Total Income of Rs 73.82 Crore, down -37.09 % from last quarter Total Income of Rs 117.34 Crore and up 12.36 % from last year same quarter Total Income of Rs 65.70 Crore. Company has reported net profit after tax of Rs -34.31 Crore in latest quarter.

The company’s top management includes Mr.Ameet Hariani, Mr.Arvind Subramanian, Ms.Amrita Chowdhury, Dr.Anish Shah, Ms.Asha Kharga, Ms.Rucha Nanavati. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 15 Crore shares outstanding.

Investment Rationale
The company's existing Residential and Integrated Cities and Industrial Clusters (IC&IC) segment pipeline contributes Rs 50 billion to its NAV. At the current enterprise value of Rs 62 billion, a large part of the growth from the unlocking of the Thane land and upcoming project additions is not priced in yet, which are likely to be key re-rating triggers, noted the brokerage.

Promoter/FII Holdings
Promoters held 51.31 per cent stake in the company as of 30-Sep-2022, while FIIs owned 10.6 per cent, DIIs 18.33 per cent.