Sharekhan has given Buy recommendation for Mahindra Lifespace Developers with a target price of Rs. 640 in its research report issued on Sep 08, 2022
Sharekhan’s research report on Mahindra Lifespace Developers
Our interaction with the management indicates a strong launch pipeline built up post Q1FY2023 led by a couple of large new projects along with phases of ongoing projects aggregating to around 3msf. Its IC&IC business continue to see leasing closures post Q1FY2023 although the velocity may not be as high during Q2FY2023. It is at final stages for closure of one to two large leasing deals. It expects to close business development deals of Rs. 500 crores in couple of months out of strong BD pipeline of Rs. 5000 crore post Q1FY2023. It is likely to foray into society redevelopment initially with smaller projects.
Outlook
We retain a Buy on the stock with a revised price target of Rs. 640, factoring in increased traction in IC&IC leasing and residential sales along with assigning higher land value.