Mahindra Lifespace Developers (MLD) reported a weak H1FY21 performance. H1FY21 sales volume saw de-growth of ~41% YoY to 0.24 million square feet (msf) (~16% decline in Q2 at 0.16 msf) with sales of Rs. 154 crore, down ~32% YoY (~8% YoY growth in Q2 at Rs. 115 crore), with Covid-19 led impact on execution, labour availability. H1FY21 residential revenues de-grew 87.4% YoY to Rs. 69.1 crore with EBITDA loss of Rs. 42 crore. Integrated Cites & Industrial Clusters (IC & IC) segment revenues declined 24.9% YoY to Rs. 61.6 crore with EBITDA of Rs. 34 crore, down 12.8% YoY.
Valuation & Outlook
We like MLD given its strong parentage, the management's focus on expanding its overall scale of operation and a comfortable balance sheet. The new land purchases could enable it to scale up its residential business, which otherwise saw lethargic movement. However, we would await fructification of such deals and traction thereof, before turning constructive. Hence, we maintain our HOLD rating on MLD with a target price of Rs. 300.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MahindraLifespace_CoUpdate_Nov20.pdf
Shares of MAHINDRA LIFESPACE DEVELOPERS LTD. was last trading in BSE at Rs.275.15 as compared to the previous close of Rs. 283.1. The total number of shares traded during the day was 2300 in over 285 trades.
The stock hit an intraday high of Rs. 284.25 and intraday low of 274.1. The net turnover during the day was Rs. 640056.