Mahindra Lifespace Developers Ltd. share price target

infrastructure development business of the Mahindra Group. It has 27.4 million square feet (msf) of completed, ongoing and forthcoming residential projects across seven cities and over 5,000 acres of ongoing, forthcoming projects under...

infrastructure development business of the Mahindra Group. It has 27.4 million square feet (msf) of completed, ongoing and forthcoming residential projects across seven cities and over 5,000 acres of ongoing, forthcoming projects under...

We like MLDL given its strong parentage, management's focus on expanding its overall scale of operation and a comfortable balance sheet. The change in management and execution has started to show initial signs of transformation with new land purchase. Group focus (expecting the overall size to expand to US$ 1 bn vs ~375 US$ million) also lends confidence. Hence, we upgrade MLDL to BUY (vs. HOLD earlier)...

MLD clocked residential sales volume de-growth of ~41% YoY to 0.24 msf (~16% fall in Q2 at 0.16 msf) with sales of | 154 crore, down ~32% YoY (~8% YoY growth in Q2). It launched Happinest Palghar 2 project in Q2FY21 with ~485 units spread over 0.18 msf. Going forward, the company is planning to launch four new residential projects in H2, mainly in Mumbai (2), Pune (1) and Chennai (1) regions. Furthermore, it is looking to expand its residential offering through land purchase with sales potential of ~| 2000 crore and expects few definite agreement signings by Q4FY21. The focus...

Leasing in IC business to be closely watched Mahindra Lifespace Developers (MLD) reported sales volume de-growth by 24.1% YoY to 0.22 msf with sales value of | 120 crore. Standalone net sales de-grew 37.2% YoY to | 83.6 crore and was much lower than our expectation of | 133.0 crore on account of lower-than-expected revenues from projects. MLD reported negative EBITDA margins of -3.6% due to higher un-allocable expenses at | 17.4 crore. Standalone PAT de-grew 36.4% YoY to | 9.7 crore due to sharp topline de-growth sharp contraction...

MLD achieved robust sales volume growth of 80.6% YoY to 0.65 million square feet (msf) (662 units) and clocked sales worth | 407 crore (2.5x YoY growth) in Q4FY19 on account of strong performance at its Centralis project (0.34 msf), Pune, where it sold 88% of the project in March, 2019. Overall, the company clocked sales volume growth of 54.5% YoY to 1.7 msf in FY19. It launched projects on 0.5 msf area & received OC for Luminare project in Q4FY19. MLD executed an agreement to purchase 6.9 acre land parcel (~0.7 msf development potential) in Pune, targeting the mid-premium segment....

ICICI Securities Ltd | Retail Equity Research Mahindra Lifespace Developers (MLD) recorded better sales volume growth at 12% YoY to 0.35 msf valued at | 215 crore Standalone net sales declined 16.1% YoY to | 121.4 crore but was better than our expectation of | 79.2 crore EBITDA margins contracted 405 bps YoY to 7.1%, lower than our estimate of 11.4% due to higher employee costs PAT grew 16.8% YoY to | 15.4 crore (better than our expectation of...

EBITDA margins turned positive to 1.5% due to lower project costs as a percentage of sales (58.8% in Q2FY19 vs. 70.9% in Q2FY18) PAT grew 72.7% YoY to | 22.1 crore (our expectation: | 14.1 crore) led by better margins, lower interest expenses & lower tax rate On a consolidated basis, the topline declined 19.8% YoY to | 80.2 crore while bottomline grew robustly by 188.1% YoY to | 40.3 crore In Q2FY19, Series III NCDs worth | 200 crore were redeemed along with redemption premium and interest. With this, the company has...

Standalone PAT grew 42.8% YoY to | 15.2 crore (our expectation: | 10.4 crore) led by strong revenue growth On a consolidated basis, topline grew 13.2% YoY to | 154 crore while its bottomline grew robustly by 193.3% YoY to | 26.7 crore MLD repaid the last tranche of its NCDs in April 2018, taking the...

Standalone net sales de-grew 51.5% YoY to | 145.3 crore (our expectation: | 110.2 crore) due to high base impact The EBITDA margins expanded sharply 1030 bps YoY to 10.5% (our expectation: 12.5%) mainly on account of lower project costs as a percentage of sales (67.2% in Q4FY18 vs. 88.2% in Q4FY17) Standalone PAT grew 223.8% YoY to | 16.5 crore. It was above our expectation of | 11.7 crore due to higher than expected other income (| 18.9 crore in Q4FY18 vs. our expectation of | 14.0 crore)...