Motilal Oswal Maintains Buy Rating on Mahindra Lifespaces with Target Price of Rs 425

Mahindra Lifespaces Sees Significant Growth with New Project Additions

Mahindra Lifespaces (MLDL) has made significant strides in its business development activity, adding seven new projects in FY26 that offer a combined gross development value (GDV) of INR105 billion. This expansion is a major milestone for the company, and it is expected to drive growth and provide medium-term visibility.

One of the key highlights of the company's expansion plan is the approval of the development plan for its Thane land project in FY26. This project is expected to contribute INR75 billion to the company's GDV, further solidifying its position in the market. Additionally, Mitsui Fudosan, the partner for the Blossom project, has committed to another deal, and the company is exploring potential joint ventures with other financial partners.

Looking ahead to FY27, Mahindra Lifespaces is targeting new project additions with a GDV of INR100 billion. This ambitious goal is expected to replenish the launch pipeline and provide a strong foundation for medium-term growth.

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Valuation and Outlook

Our research team has valued the company's residential business on a discounted cash flow (DCF) basis, using a weighted average cost of capital (WACC) of approximately 12.3%. This valuation translates to a total enterprise value of INR68 billion. Based on this analysis, we have upgraded our rating to BUY on the stock, with a target price (TP) of INR425. This reflects a potential upside of 25% for investors.