Buy Mahindra Lifespaces; target of Rs 470: Motilal Oswal

Moneycontrol • 9 days ago

Original source

Key Investment Pillars

  • Strong business development: Mahindra Lifespaces has strengthened its business development pipeline with the addition of two society redevelopment projects in MMR, taking its residential GDV pipeline to ~INR504b.
  • Healthy traction across launches: The company has witnessed healthy traction across its launches, including Beaconhill, Citadel, and Mahalunge, with pricing at a premium to the respective micro-markets.
  • Robust launch pipeline: Mahindra Lifespaces has a robust launch pipeline, with three more projects expected to be launched in FY27, providing comfortable launch visibility over the medium term.
  • Cash flow visibility: The company has a healthy pipeline of unsold inventory, which should aid the IC&IC revenue in the coming years, with potential net cash flows of ~INR153b from its residential portfolio over the coming years.

Thesis Validation Checklist

  • Presales growth: Monitor presales growth, which is expected to post a 27% CAGR over FY26-28.
  • Launch pipeline: Track the launch pipeline, with three more projects expected to be launched in FY27.
  • Cash flow generation: Watch for cash flow generation, with potential net cash flows of ~INR153b from its residential portfolio over the coming years.
  • Business development: Keep an eye on business development, with the company targeting FY27 BD additions of INR100-200b.