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Sunday, July 11, 2010

Stock Report : Mahindra Lifespace Development Ltd (MLDL)

Checkout stock report and stock price target for Mahindra Lifespace, earlier known as Mahindra Gesco Developers Ltd.This is the real estate development arm of $6 billion Mahindra Group and is a subsidiary of Mahindra & Mahindra Limited.

Mahindra Lifespace Development Ltd has been in the forefront of Urban Development in the country.

This stock report discusses the current developments in the company and looks for the guidance for stock price target for next one year.

Being part of $6.3 billion Mahindra Group, MLDL a reputation of being a pioneer in the development of integrated business cities & delivering quality living spaces. The company has developed premium residential & commercial properties in Mumbai, Pune, Delhi, Chennai & the Mahindra World Cities at Chennai & Jaipur.

The company’s current project list includes Mahindra Eminente at Goregaon-Mumbai, Mahindra Splendour at Bhandup-Mumbai Mahindra Royale at Pune,& Mahindra Chloris at Faridabad and these are progressing as per schedule. Sylvan Country at Mahindra World City-Chennai has been completed during the year while approvals have been received for starting construction on Mahindra Aura at Gurgaon NCR. Mahindra Lifespace Development Ltd (MLDL) has completed 10 residential & 8 commercial projects in Mumbai/Pune/Chennai/Banglore/Delhi/Gurgaon.

Upcoming projects are Mahindra Aura Phase II in Gurgaon & a project in MIHAN SEZ Nagpur.

The demand for commercial & residential premises in metros is likely to see an uptick with revival in the economy in both domestic & global, more and more foreign firms setting up offices and improving demand for residential property for expats.

The near term concern could be surplus in commercial & residential premises, but this could be short term negative as the projects of MLDL are at location where there is land shortfall for development.

Market Cap 1977.8
* EPS (TTM) 19.44
* P/E 24.92
* Book Value 232.26
* Price/Book 2.09
Div(%) 35.00%
* Div Yield(%) 0.72
Market Lot 1.00
Face Value 10.00
Industry P/E 20.76

Mahindra Lifespace Development Ltd (MLDL) has reported 225% growth in income from operations in Q4 F-2010,PAT was up 65%.The company has also given a dividend of 35%.

MLDL has observed net profit margins of almost 25% which is very health percentile. If company achieves the 25% growth in sales, which has been their historical growth avarage and say even 25% growth in net profits (company has observed more growth in past few years), expected forward EPS in one year could be RS. 24.31. At current stock price of MLDL, Rs. 484, P/E Ratio stands at 24.92. The forward EPS leads to forward P/E of 19.90 at current stock price.

With above calculations in mind, one year stock price target for MLDL could be around Rs.600

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