28 Oct , 2021 By : Kanchan Joshi
Realty stock Mahindra Lifespace have given multibagger return this year so far as the shares have surged over 130% in 2021 (year-to-date or YTD) so far, whereas, the scrip is up more than 210% in a year. Brokerage house ICICI Securities sees further upside on Mahindra Lifespace share price.
Shares of Mahindra Lifespace have grown at around 16 percent CAGR (Compound annual growth rate) over past five years (from around Rs133 in October 2016 to Rs278 levels in October 2021). The brokerage has maintained its Buy rating on the stock with a target price of Rs335 per share.
The company has outlined five year plans wherein it aims to achieve the sales value of | 2500 crore by FY25. For the same, it is targeting four land transactions every year totalling around Rs2,000 crore worth of sales potential, ICICI highlighted in a note. It reported healthy Q2FY22 results, driven by profitability in industrial cluster segment.
Robust launch pipeline and unsold inventory with Rs2,308 crore of potential cash flow, huge captive land bank and expansion plans, recent management changes lend diverse expertise and scale, IC & IC business to benefit from PLI/manufacturing push, and borrowing cost lowest amongst the peers– a huge competitive advantage, could act as key triggers for future price performance, the brokerage note added.
Mahindra Lifespace Developers (MLD) is the real estate and infrastructure development business of the Mahindra Group. It has 27.4 msf of completed, ongoing and forthcoming residential projects across seven cities and over 5,000 acres of ongoing and forthcoming projects under development at its integrated developments / industrial clusters across four locations.
Besides MLD, ICICI Securities likes Nesco Ltd in real estate space on the back of its play on recovery of exhibition and office leasing. The buy rating comes with a target price of Rs745 apiece.
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