Mahindra Lifespace Developers Ltd. share price target

Mahindra Lifespaces (MLDL) clocked bookings of INR3.3b in 3QFY25 (44% miss), down 25% YoY, as volumes declined 15% YoY to 0.5msf.

We retain a Buy on Mahindra Lifespace Developers Limited (MLDL) with a revised PT of Rs. 644, removing NAV premium due to slower-than-anticipated new project additions and higher leverage.

Mahindra Lifespaces (MLDL) achieved bookings of INR10.2b, up 195% YoY (in line) in 1QFY25, driven by a strong response in the new projects in Pune and Bengaluru.

Mahindra Lifespace Developers Limited (MLDL) reported yet another strong quarter breaching Rs.
1000 crore pre-sales mark (Rs. 1019 crore, up 3x y-o-y) in Q1FY2025 led by key project launches during March 2024.

After Mahindra Lifespace Developers’ (MLIFE) current MD and CEO, Mr. Amit Kumar Sinha, took over from May’23, the company had unveiled a strategy of reaching INR 80-100bn of annual residential plus industrial cluster sales by CY28
or 5x in 5 years (CY23-28), while near-term focus remained on achieving its guidance of INR 30bn of residential + industrial cluster (IC) sales by FY25.

We retain a Buy on Mahindra Lifespace Developers Limited (MLDL) with a revised PT of Rs. 785, increasing our NAV valuation, factoring higher pre-sales run-rate and recently-launched projects.

FY23 was a breakout year for Mahindra Lifespace Developers (MLIFE) as it clocked record residential sales bookings of INR18.1bn (up 76% YoY). With the new MD and CEO, Mr. Amit Kumar Sinha, taking over from May’23, the company has now unveiled a strategy of reaching INR80-100bn of annual residential plus industrial cluster sales by CY28 or 5x in 5 years (CY23-28E), while near-term focus remains on achieving its guidance of INR30bn of residential + industrial cluster (IC)sales by FY25E.

FY23 was a breakout year for Mahindra Lifespace Developers (MLIFE) as it clocked record residential sales bookings of INR18.1bn (up 76% YoY). With the new MD and CEO, Mr. Amit Kumar Sinha taking over from May’23, the company has now unveiled a strategy of reaching INR80-100bn of annual residential plus industrial cluster sales by CY28 or 5x in 5 years (CY23-28E) while near-term focus remains on achieving its guidance of INR30bn of residential sales by FY25E.

FY23 was a breakout year for Mahindra Lifespace Developers (MLIFE) as it clocked record residential sales bookings of Rs18.1bn (up 76% YoY) led by 3.2msf of new launches. With the new MD and CEO, Mr. Amit Kumar Sinha taking over from May’23, the company’s focus remains on achieving its medium-term guidance of Rs25bn of residential sales by FY25.

Mahindra Lifespace Developers (MLIFE) clocked Q4FY23 sales bookings worth Rs3.6bn (I-sec estimate of Rs3.7bn) led by two new launches across existing/new projects. MLIFE has clocked FY23 sales bookings of Rs18.1bn (up 76% YoY) and with the company having nine planned launches in FY24 having a GDV of Rs35-40bn (including high value Kandivali, Mumbai project in H1FY24), we estimate FY24E and FY25E sales bookings of Rs23.4bn and Rs27.1bn, respectively.

Mahindra Lifespace Developers (MLIFE) has announced the resignation of its current MD & CEO, Mr. Arvind Subramanian who has been helming the company’s operations since May’20. In his place, the Mahindra Group has appointed Mr. Amit Kumar Sinha as the new MD & CEO from May’23 who has been already working with the Mahindra
Group as President, Group Strategy since Apr’21 and carries over 18 years experience and was a Senior Partner and Director with Bain & Company prior to joining the Mahindra Group.

Mahindra Lifespace Developers (MLIFE) clocked Q3FY23 sales bookings worth Rs4.5bn (I-sec estimate of Rs4.6bn) led by four new launches across existing/new projects.