Shares of Mahindra Lifespace Developers Ltd. gained the most in nearly two months after HDFC Securities initiated coverage with a ‘buy’ citing healthy project pipeline, strong balance sheet, and ability to leverage tailwinds.
The real estate and infrastructure development arm of the Mahindra Group, according to the brokerage, has an established track record, backed by a strong brand. The company’s focus on timely execution and high saleability of projects adds to its allure, it said.
HDFC Securities has set a base-case target price of Rs 479 and a bull-case target of Rs 521 on the company. “Investors can buy the stock in the band of Rs 432-440 and add more on dips to Rs 391-398 band for a time horizon of three-four quarters,” the brokerage said.
The company’s minimal inventory, negligible debt—considering deferred land payments—makes it well placed to acquire new projects to ride the upcycle, HDFC Securities said.
“The company is likely to see bookings to the tune of Rs 1,800-2,000 crore in FY23 driven by the launches, new phases and balance inventory,” HDFC Securities said in the note. “It has a diversified portfolio across regions that augurs well for business development,” it said.
The company operates in residential developments under the ‘Mahindra Lifespaces’ and ‘Mahindra Happinest’ brands with its integrated cities and industrial clusters under the ‘Mahindra World City’ and ‘Origins by Mahindra World City’ brands.