HDFC Securities Assigned "Buy" On Midcap Real Estate Stock, Sees Strong 43% Upside

HDFC Securities has assigned a "Buy" on Mahindra Lifespaces Developers Ltd (MLDL), a mid-cap Mahindra Group's Real Estate stock. According to the given target price of Rs 521 apiece to the stock by HDFC Securities, it can fetch a healthy return of up to 43% if purchased at the current market price. It has a market capitalisation of Rs 5,664.81 crore. Below are the key takeaways of the stock from the report:

Mahindra Lifespaces Developers' Stock outlook & Returns

The last traded share price of MLDL on NSE is Rs 366.40 apiece, down 3.30 apiece as compared to its previous close of Rs 378.90 apiece. The stock recorded its 52 week low on 7 March 2022 at Rs 275.05 apiece and 52 week high on 12 September 2022 at Rs 550.75 apiece, respectively.

The stock has fallen 4.52% in a week and 1.87% in the past 1 month, respectively. In the last 1 year, it has gained 29.36%. It gave a robust return of 181.95% in the past 3 years and 142.49% in the past 5 years, respectively.

 

Charting a new path

According to the brokerage, Mahindra Lifespaces Developers Ltd (MLDL) announced the appointment of MD & CEO, Mr. Amit Kumar Sinha, after Arvind Subramanian resigned from his post as MD & CEO to pursue personal interests. As communicated by Mahindra group CEO & MD Dr. Anish Shah, the new CEO will have the freedom towards capital allocation (with input from the board).

Capital will not be a constraint for MLDL as M&M and financial partners believe MLDL is a high-growth business with an expected RoE between 15-18% for the group. In terms of intent, the group does not see their real estate business as a marginal player in the existing market and expects to go deeper in the MMR, Pune and Bengaluru markets. As a result, the group expects to outperform some of its promoter-driven peers.

The upcoming CEO laid out its top three priorities: (1) Deliver INR 25bn/INR 5bn sales in residential/industrial by FY25 (may be a year ahead); (2) Given recent launch success, accelerating further launches; (3) across residential/industrials/others, looking at what can create maximum value and accelerating land acquisition efforts.

 

HDFC Securities says Buy for a target price of Rs 521/share

The brokerage said, "Given the tailwinds in the industrial business, the upcycle in the residential business, a robust balance sheet, a trustworthy brand image, and a robust business development pipeline, we remain constructive on MLDL and maintain a BUY rating, with NAV-based TP of INR 521/sh."

 

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.