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 3008.75 Crore) operating in Real Estate sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 58.12 Crore, down -17.20 % from last quarter Total Income of Rs 70.19 Crore and down -47.54 % from last year same quarter Total Income of Rs 110.78 Crore. Company reported net profit after tax of Rs -32.67 Crore in latest quarter.
Investment Rationale
The company is perceived to have missed the bus over the last decade as peers have significantly scaled up their residential business while MLIFE has remained stagnant. However, with a new leadership in place and backing from the company’s parent (the Mahindra Group), the company is targeting aggressive expansion over the next three-four years. With plans to spend Rs5bn each year on land which can potentially generate annual sales of Rs20-25bn, the brokerage expects the company’s annual sales bookings value to grow at a 39% CAGR over FY21-25E to Rs25bn. Key risks to rating are a demand slowdown in the Indian residential market and rising interest rates in India.
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.
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