Mahindra Lifespace Developers: Target Price Rs 500, According to Choice Institutional Equities Research
Mahindra Lifespace Developers Reports Record Quarterly Residential Sales
Mahindra Lifespace Developers (MAHLIFE) has achieved record quarterly residential sales, driven by strong launches. According to a recent report by Choice Institutional Equities, MAHLIFE's pre-sales and collections rose significantly, with a year-over-year (YoY) growth of 54.8% and 36.3%, respectively. The Average Selling Price (ASP) also grew by a substantial 35.1% YoY, backed by pre-sales from new launches.
The company's recent launch of Mahindra Blossom in Bengaluru was a notable success, with 60% sales achieved within a week of launch. This strong performance is a testament to the company's ability to execute its business strategy effectively.
Maintaining a 'BUY' Rating
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Choice Institutional Equities maintains its 'BUY' rating on MAHLIFE with a target price (TP) of INR 500. The report takes into account the company's Residential Business, Industrial Cities and Integrated Cities (IC&IC), and Operations & Maintenance (O&M) segments, as well as its historical land bank.
| Segment | QoQ Growth | YoY Growth |
|---|---|---|
| Pre-sales | 54.8% | |
| Collections | 36.3% | |
| Average Selling Price | 35.1% |
Note: QoQ growth refers to quarter-over-quarter growth, while YoY growth refers to year-over-year growth.
Investor Takeaway
Investors should consider buying Mahindra Lifespace Developers with a target price of Rs 500.
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