Sharekhan has given Buy recommendation for Mahindra Lifespace Developers with a target price of Rs. 795 in its research report issued on Jul 12, 2021

Sharekhan’s research report on Mahindra Lifespace Developers

Property registrations in Mumbai and Maharashtra show encouraging signs in Q1FY2022 and July till date. Unsold inventory stable q-o-q and down y-o-y during Q1FY2022. Healthy traction in MLDL’s region of operations indicates Q1FY2022 sales to be around H1FY2021 and significantly higher y-o-y. Collections to be much better y-o-y, owing to low base and lesser impact of COVID-19 second wave on consumers. We expect new launches from Q2FY2022, which along with improving realty market would aid in healthy pre-sales for FY2022. The company is actively pursuing Rs. 4,500 crore worth of land deals for future growth.

Outlook

We retain Buy on Mahindra Lifespace Developers Limited (MLDL) with a revised PT of Rs. 795, owing to strong growth outlook and valuation comfort.

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