ICICI Securities ‘Buy’ on this multibagger stock which is up 210 per cent in one year

Mahindra Lifespace shares have grown at a CAGR of around 16% (Compound Annual Growth Rate) in the last five years. ₹133 to in October 2016 ₹278 levels in October 2021). The brokerage has maintained its buy rating on the stock with a target price of ₹335 per share.

The company has drawn up an outline of five year plans, in which its objectives are . 2500 crores by FY25 to achieve a selling price of. For this, it is targeting a total of four land transactions every year. ₹2,000 crore worth of sales potential, ICICI highlighted in a note. It reported healthy Q2FY22 results, driven by profitability in the Industrial Clusters segment.

With strong launch pipeline and unsold inventory ₹2,308 crore of potential cash flow, huge captive land bank and expansion plans, recent management changes diversified expertise and scale, lending to IC and IC business to benefit from PLI/manufacturing push, and lowest borrowing among peers Cost of – A huge competitive advantage, may act as a major trigger for future price performance, the brokerage note added.

Mahindra Lifespace Developers (MLD) is the real estate and infrastructure development business of the Mahindra Group. It has 27.4 msf of completed, ongoing and upcoming residential projects in seven cities and over 5,000 acres of ongoing and upcoming projects under development in its integrated development/industrial clusters at four locations.

Apart from MLD, ICICI Securities likes Nesco Ltd in the real estate space behind its game on recovery of exhibition and office leasing. Comes with a target price of buy rating ₹745 per.

The views and recommendations given above are those of individual analysts or broking companies and not of Mint.