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Motilal Oswal Latest Pick Is Multibagger Small Cap Real Estate Stock, Buy For 47% Upside

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Motilal Oswal has picked multibagger Real Estate sector stock, Mahindra Lifespace Developers Ltd as the stock is "Well on track to achieve near-term targets." The analyst has given buy call to Mahindra Lifespace with a target price of Rs 550 apiece. If you buy the stock at the current market price of Rs 373 apiece, you are set to receive 47% upside in the stock. The small cap company has given multibagger return to investors. Check key takeaways below:

1. Mahindra Lifespace Stock Performance & Return

1. Mahindra Lifespace Stock Performance & Return

The last trading price of the stock is Rs 373 apiece with an intraday decline of 2.30%. The stock's 52-week high is Rs 554 apiece and 52-week low is Rs 218 apiece. The stock has given 142% return in last 5-years, 197% return in last 3-years, and 49% return in last 1-year.

2. Launches More Or Less On Track To End Fy23 On A Strong Note
 

2. Launches More Or Less On Track To End Fy23 On A Strong Note

On the back of steady progress in project additions over the last two years and timely launches, MLDL achieved the highest ever pre-sales of INR10b in FY22.

Further, continued traction in sustenance sales and strong response to recent launches in Bengaluru (Eden, Kanakapura) and Luminare, Gurugram enabled the company to cross INR10b bookings in 1HFY23. While launch plans for a few key projects such as Kandivali and Dahisar got pushed out due to delay in approvals, earlier-than-expected launch of Pimpri-II (Pune) along with subsequent phase at its Bengaluru project (Eden) will help the company sustain its sales momentum.

3. BD - Scale Up In Deal Closures To Provide Further Visibility

3. BD - Scale Up In Deal Closures To Provide Further Visibility

With focus on two markets, i.e., MMR and Pune, the company was initially targeting project additions worth INR20b, annually. The company is now incrementally looking at Bengaluru as its core market, and hence, it is targeting GDV additions of INR30-40b.

4. Valuation

4. Valuation

According to Motilal Oswal, "Excluding its FY23 net debt of INR3b (at MLIFE's share), we arrive at a NAV of INR85b. Applying zero discount to its NAV, we arrive at a TP of INR550 with a 44% upside potential. We reiterate our Buy rating on the stock."

5. About Mahindra Lifespace

5. About Mahindra Lifespace

Mahindra Lifespace Developers Limited (MLDL) is one of the leading real estate development companies in India. Mahindra Lifespace Developers Limited (MLDL) a wholly owned subsidiary of Mahindra & Mahindra Ltd came into existence with the demerger of the property development division of Great Eastern Shipping.

Disclaimer

Disclaimer

The stock has been picked from the brokerage report of Motilal Oswal. 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 check with certified experts before taking any investment decision.

 

Story first published: Friday, December 9, 2022, 7:45 [IST]
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