Pick of the Week

Mahindra Lifespace Developers Ltd.

April 22, 2024
 Mahindra Lifespace Developers Ltd.

Industry LTP Recommendation Base Case Fair Value Bull Case Fair Value Time Horizon

Real Estate Rs 626 Buy in the band of Rs 615-625 & add more on dips to Rs 564-570 band Rs 684 Rs 725 2-3 quarters

HDFC Scrip Code MAHLIFEQNR Our Take:

BSE Code 532313 Mahindra Lifespace Developers Ltd (MLDL) is the real estate and infrastructure development arm of the Mahindra Group. The company
NSE Code MAHLIFE follows a mixed strategy of real estate development viz. industrials clusters, integrated cities, mid luxury, affordable housing. The company’s
Bloomberg MLIFE IN
development footprint spans 35.06 million sq. ft. (msft) of completed, ongoing and forthcoming residential projects across seven Indian
CMP Apr 19, 2024 626
cities; and over 5000 acres of ongoing and forthcoming projects under development/management at its integrated developments /
Equity Capital (Rs Cr) 154.5
industrial clusters across four locations. MLDL has an established track record, backed by a strong brand, focus on timely execution and high
Face Value (Rs) 10.0
saleability of projects.
Equity Share O/S (Cr) 15.5
Market Cap (Rs Cr) 9,709
Book Value (Rs) 113.0
MLDL has a healthy launch pipeline planned across projects in Mumbai, Pune and Bengaluru. It has a diversified portfolio across regions
Avg. 52 Wk Volumes 273,340 that augurs well for business development. It has a healthy pipeline of land deals. It will continue to evaluate further opportunities through
52 Week High 669.5 asset light model including joint development and JVs with landowners. The company has done 2 deals this year, resulting in cumulative
52 Week Low 357.5 GDV of Rs 2,300 cr and is expected to close 1 or 2 more deals in the current quarter. The company has a healthy GDV pipeline of Rs 4,000 –
Rs 6,000 cr for future launches. MLDL has a clear focus on the mid-premium and premium segment customer segment in the near term and
Share holding Pattern % (Dec, 2023) will continue to scale up its business to grow 5x to Rs 8,000 - Rs 10,000 cr by 2028.
Promoters 51.2
Institutions 31.7 Industrial business is expected to see momentum buoyed by a slew of government measures coupled with the global realignment of
Non Institutions 17.1 manufacturing, supply chains and support lent from better infrastructure & related activities – which bodes well for this segment in the
Total 100.0 years to come. The IC&IC (Integrated Cities and Industrial Clusters) business has a huge inventory that provides long term visibility. A large
part of the land and supporting infrastructure cost is already paid out for, which could lead to healthy annual cash generation as leasing
activity further scales up. Stable cash flows would fund land acquisition for residential business.

We had issued stock update report on Feb 09, 2023 (link); and both the targets were achieved within our investment horizon. We are
positive on the company’s project additions, launch pipeline and healthy collections.

* Refer at the end for explanation on Risk Ratings

Valuation & Recommendation:
Mahindra Lifespace Developers is well placed to leverage the tailwinds in industrial business and plug-and-play infrastructure across multiple
Fundamental Research Analyst Darshil Shah
corridors and upcycle in residential business with strong additions in land bank for residential projects. MLDL is one of the few organised
darshil.shah@hdfcsec.com
players with a strong balance sheet and benefits from attractive cost of capital which enhances its competitive position. With presence in
 Mahindra Lifespace Developers Ltd.

both residential and industrial sectors, coupled with prudent financial and professional management, track record of execution, healthy
collections and robust business development pipeline; the company is set to improve its reported revenue and earnings. Given minimal
inventory, negligible debt (considering deferred land payments); the company is well placed to acquire new projects to ride the upcycle.
We are positive on the company and have arrived at NAV-based base case target price of Rs 684 and bull case target of Rs 725 over the
next two-three quarters. Investors can buy the stock in the band of Rs 615-625 and add more on dips to Rs 564-570 band.

Financial Summary:
Particulars (Rs cr) Q3FY24 Q3FY23 YoY-% Q2FY24 QoQ-% FY23 FY24E FY25E FY26E
Operating Income 82.0 186.9 -56.1 17.8 361.4 393.6 606.6 790.5 887.8
EBITDA -39.0 -11.4 -241.3 -34.9 -11.7 -89.5 -110.1 -92.1 81.8
APAT 50.0 33.2 50.6 -19.0 364.0 42.1 52.1 180.5 216.7
Diluted EPS (Rs) 50.0 7.7 547.5 -19.0 364.0 2.7 3.4 11.7 14.0
RoE (%) 3.22 2.14 50.5 -1.22 164.0 1.1 2.7 3.4 11.7
P/E (x) 230.2 178.9 51.7 43.0
EV/EBITDA (x) -89.6 -104.4 117.2 85.1
(Source: Company, HDFC sec)

Q3FY24 Result Update

Mahindra Lifespace Developers Ltd (MLDL) reported an in-line presales of Rs 443cr (-1.6%/-2.6% YoY/QoQ) with volume of 0.53 msft (-13.1%/-22.1% YoY/QoQ). The company clocked pre-sales of
Rs 1243cr during 9MFY24 vs Rs 1452cr in FY23. In the 9-month period of FY24, the company’s sustainable sales contributed 3x of what it had contributed in the previous financial year. Sustainable
sales in 9MFY24 stood at Rs 923 cr as against Rs 330 cr in 9MFY23. The company has received RERA approval for some of its sizeable projects, including Mahindra Vista in Kandivali. MLDL has
launched 4 projects in 9MFY24. In Q3, MLDL launched Phase 2 of Mahindra Citadel in Pune, which are larger units of 2 and 3 BHK – representing 0.62 msf saleable area, 40% of which was already
sold during the launch period. MLDL had also launched its first plotted development in Chennai - Lakefront, earlier in FY24. MLDL has completely sold out its plotted development and is in the
process of launching a second plotted development in Chennai, which was planned for FY25. It is currently awaiting RERA approval for the project. MLDL also launched Phase 3 of Happinest
Tathwade. Collections continued to remain strong at Rs 386 cr in Q3FY24 as compared to Rs 304 cr in Q3FY23.

On the business development front, the company completed its Wagholi deal in Pune which is of 5.4 acres, with a development potential of 1.5 msf. The company is in the process of its RERA
approval. MLDL has a healthy business pipeline of Rs 5000 – Rs 6000 cr at different levels of completion, excluding the Thane land parcel, which is valued at around Rs 8000 cr. The company reported
its best ever quarter for IC&IC business, signing multiple deals in Q3FY24 of cumulative 70 acres worth Rs 224 cr in value, as compared to 24.5 acres worth Rs 69 cr in Q3FY23.

MLDL reported topline of Rs 82.0 cr (-56.1%/+361.4% YoY/QoQ). It posted negative EBITDA of Rs 39.0 cr as against negative EBITDA of Rs 11.4 cr in the corresponding quarter in the previous year.
The company posted profit of Rs 50.0 cr (+547.5% YoY) mainly led by profits from JV/associates of Rs 75.4 cr and largely driven by land monetization in the IC&IC business.
 Mahindra Lifespace Developers Ltd.

Latest Developments:
 Upcoming launches:
o In Q4FY24 so far, the company launched Phase 1 of Mahindra Vista in Kandivali with inventory worth Rs 1200 cr, out of the total GDV of Rs 2600 cr in the Kandivali project. The company sold
over Rs 800 crore worth of inventory within 3 days post the launch. MLDL also entered the Pune East micromarket, with the launch of Mahindra Codename Crown in Kharadi Annex. Situated
on a 5.38-acre property, Mahindra Codename Crown offers a range of 2, 3 & 4 BHK homes, promising a premium living experience and received RERA approval on 04th March 2024.
o The company is in final stages of approval for Wagholi in Pune and Malgudi in Bangalore. MLDL is also pushing for the launch of its Navy project in Malad in the upcoming quarter.

 Business Development (BD) pipeline: BD pipeline for the company is robust at Rs 5000cr with Rs 2,500 – Rs 2,600 cr in advanced stages and expected to close in upcoming quarters. Of the existing
BD pipeline, 50-60% is focused in Mumbai, 15-20% in Pune and the remaining in Bangalore. This pipeline is excluding the Thane land parcel. In Pune and Bangalore, the company also focuses on
outright sales as land prices are relatively manageable.

 Focus on plotted developments:

o The company launched its plotted development – Lakefront in Chennai and has completely sold out the project. The management feels that the profitability and the ability to bring back cash is
very high in plotted projects and hence is looking across its land assets where it can get approval for plotted development.

o MLDL plans to launched a second plotted development in Chennai, where it has significant land parcel.
 Thane land parcel: MLDL had earlier completed the conveyance for Ghodbunder road, Thane land parcel. The company is in the process of getting regulatory approval for the new IITT policy
(Integrated Information Technology Township) that came in August 2023 which gives higher FSI and favourable residential sales mix . Given the development in Thane market, improved
realization, connectivity and infrastructural development, the company stands to benefit from its land parcel in the area.
 IC & IC Business: The company continues on the path of extracting maximum value from IC business and put the resultant cash in its residential business to capitalize on the current market
upcycle. While the company witnessed its best ever quarter for the segment in Q3, the business remains lumpy. However, the company aims to extract maximize value from its IC&IC assets and
put that cash into the residential business, given the current business cycle.

 Debt Cost: Overall cost of debt was approximately 8.48% in Q3FY24 whereas the company’s net debt to equity stood at 0.16.
 Mahindra Lifespace Developers Ltd.

Key Drivers
Residential business – on healthy footing; launches to gain momentum:
MLDL has defined a clear strategy to scale up its business and is committed to grow its pre-sales by 5x over FY23-28E to Rs 8000 – Rs 10000 cr by ramping up launches at existing projects and
increasing its project pipeline. In FY23, the company registered pre-sales of Rs 1812cr (up 76% YoY) and saw considerable increase in area sold from 1.28 msft to 2.23 msft. The company clocked
sales booking of Rs 1243cr in 9MFY24. MLDL has a strong business development pipeline of Rs 5000cr across new land parcels, of which Rs 2500-2600cr worth of projects are in advanced stages of
discussion. The company, recently, launched Phase 1 of its relatively bigger project, Mahindra Vista in Kandivali and also announced its foray in Pune East micromarket, with the launch of a project
in Kharadi annex. On the back of strong visibility and focused growth strategy in Mumbai, Pune and Bengaluru; the company is targeting Rs 5000-6000cr of GDV additions in the near term.
MLDL has the option to acquire land parcels from the promoter group. It had already acquired 9.24 acres of parent M&M’s Kandivali land for consideration of Rs 365cr and has launched Phase 1 of
the project. The company also purchased 5.4 acres of land in Wagholi, Pune which has a development potential of 1.5 msf worth Rs 1400 cr GDV. MLDL is also in the process to unlock a large 68-
acre parcel on Ghodbunder Road (Thane) and aims to launch it in early FY25. The project has development potential of over 5 mn sq ft and would be a mixed-use development – 50% residential and
50% commercial. Its existing land bank in Chennai (100 acres of residential development) also has significant growth potential for plotted developments.

Apart from outright purchase and joint development/joint venture (JDA/JV) agreements with landowners; the management is evaluating opportunities in society redevelopment and stressed assets.
Preference for trusted and established developers has opened opportunities in society redevelopment space in Mumbai (market estimated to be worth over Rs 30,000 cores). The company has
made significant progress and is in the process of final stages of re-development of two adjacent residential societies in Santacruz West, Mumbai having revenue potential of Rs 500cr and is hopeful
of winning more such redevelopment projects.

Robust residential sales with gradual pick-up in project launches Healthy project pipeline to pave the way for future growth

Residential Sales and Volume Collections higher than construction costs

800 0.8 500
600 0.6 400
300
400 0.4
200
200 0.2
100
0 0 0

Sales (Rs cr) Sales Volume (msft) (RHS) Collections (Rs cr) Construction cost (Rs cr)
 Mahindra Lifespace Developers Ltd.

Gradual pickup in project launches Healthy project pipeline (msft)

1.2 25
1
20
0.8
0.6 15 8
0.4
10 20
0.2 7
0 5
3
0 2
Ongoing Future New Thane Total
Launches (msft) Completions (msft) Inventory Phases projects (expected) Pipeline

(Source: Company, HDFC sec)

MLDL is scaling up its land acquisitions and approvals pipeline; building the organizational muscle for significant growth in the residential business. With superior execution and timely delivery, MLDL
created a strong brand recall among customers leading to its sales outperforming construction. Its track record of higher properties sales upon launch; collections higher than construction costs
outflow results in better operating cash flows. By leveraging its professional management, track record of execution and robust visibility on the deal front; the company is set to improve its reported
revenue and earnings. Given minimal inventory, negligible debt; the company is well placed to acquire new projects to ride the upcycle.

IC&IC Business - near term performance is muted; but provides long term visibility
MLDL’s real estate exposure to Industrial customers is through Mahindra World Cities (MWC) in Chennai and Jaipur and Origins in Chennai and Ahmedabad. Two MWCs in Chennai and Jaipur and
Origins Chennai — have over 200 companies as lessees from over 20 countries. These industrial projects have a combined gross area of over 5,000 acres and a leasable potential of over 3,600 acres.
Development work is currently in progress in an industrial cluster project - Origins Ahmedabad. The business would be further bolstered with another cluster project in Pune which is at the land
aggregation and planning stage. The company saw a pick-up in leasing in its IC&IC segment as it leased 158 acres in FY23 (v/s 110 acres in FY22) and 90 acres in 9MFY24 and generated an income of
Rs 333cr in 9MFY24.
 Mahindra Lifespace Developers Ltd.

Record quarter for IC&IC business in Q3FY24 after headwinds in previous quarters Well-diversified inventory across geographies

IC&IC business segment quarterly trend Unsold inventory (acres)

2,000
100 5.0
1,500 500
80 4.0 85
255
60 3.0 1,000 1,756
40 2.0 500 825
91
20 1.0 0

MCW Jaipur

Origins Chennai

Ahmedabad

(forthcoming)

Total inventory
MCW Chennai

Origins Pune
0 0.0

Origins
Leased Area (acres) Avg Price per acre (Rs cr) (RHS)

(Source: Company, HDFC sec)

The IC&IC business has a huge inventory of over 2000 acres which provide long term visibility. MWC Chennai is almost sold out, while in MWC Jaipur almost half of area is sold under lease. MWC
Jaipur saw decent traction in 9MFY24. Traction in Origins Ahmedabad is currently subdued as it is looking to onboard an anchor tenant which could take some more quarters. Origins Pune is under
the land aggregation stage, and will add ~500 acres to the inventory. The company is at the approval stages to launch IC&IC business in Pune and is likely to take another two years to commence
operations. Given its superior offerings, the IC segment can significantly benefit from the government’s thrust on manufacturing and a global shift in the supply chain. There is a growing demand
from domestic manufacturing clients as well as in warehousing and logistics. MLDL offers scalable and sustainable master plans with better access, connectivity and infrastructure. It has set target
of achieving Rs 500cr of annual leasing by FY25. A large part of the land and supporting infrastructure cost is already paid out, which would lead to healthy annual cash generation as leasing further
scales up. Stable cash flows would fund land acquisition for residential business (lower gestation and lower risk).

New joint venture with Actis – provides land monetization:

MLDL announced a JV with Actis to build specialized real estate for industrial and logistics facilities. The company would hold a minority stake of 26%. Given the capital intensive nature, this will be
operated as a separate JV with separate leadership team supervised by the Board. This is a growing asset class with strong value creation opportunities, as there has been lot of investment coming
in this space. Moreover, it would complement the existing IC&IC business and offers an annuity business opportunity.
 Mahindra Lifespace Developers Ltd.

Risks & Concerns:

Risks and cyclicality inherent in the real estate sector: Risk and cyclicality in the real estate sector could impact both its segments – residential and IC&IC segment. Scalability and realisation could
impact residential business given the cyclical nature of the sector. Slowdown in personal incomes growth could affect the demand for residential homes. In its commercial segment (IC&IC segment),
total leasing of area depends on the local demand, state government policies for promoting business growth and industrial activity.

Delay in ongoing and planned projects: The company’s current and forthcoming projects may be subject to changes in terms of timelines, realisations, completions as a result of factors outside its
control. There are considerable procedural delays with respect to approvals related to acquisition and use of land, environment approval, etc. Defects or challenges to land titles, failure or delay in
obtaining consent from current occupants, non-renewal or pre-mature termination of leases, failure or delay in securing necessary regulatory approvals and permits to develop some of its projects
could impact its topline and operational performance. The company could take longer than expected time to launch and monetise its large land banks (Thane - 68 acres, Murud 1291 acres).

Delay in monetisation of Industrial parks: In the IC&IC segment, company has 50% unleased land in MWC Jaipur, only 53 acres leased area out of 209 acres in Origins Chennai. Launches for Origins,
Ahmedabad and Pune are expected to be live from FY24 and FY25 respectively. There are expectations of manufacturing pick-up in India, owing to government incentives and benefit like PLI and
tax concessions, which could benefit the company. Any delay in sustained demand given global recessionary fears may impact monetisation potential of these land parcels.

Inflationary pressures: Significant increases in prices or shortages of, or delay or disruption in supply of labour and key building materials could impact its profitability. MLDL has in place value
engineering and design efficiency, efficient procurement methods and takes price hikes to reflect market realities and to mitigate inflationary risks. The company follows a more dynamic pricing
(yield-based prices); increase in prices as velocity of sales picks up. Also price hikes of 1-1.5% per quarter is considered due to inflationary pressures.

Policy and Regulatory Risks: The real estate industry is often affected by changes in government policies and regulations. Unfavourable changes in the government policies, environmental related
regulations and others may adversely impact the performance of the company.

Operational Risks: There are a number of operational risks associated with real estate business – inability to complete and deliver projects according to the timelines leading to incremental costs,
difficulties in the appointment and retention of quality contractors, shortage of manpower, non-compliances with laws and regulations leading to fines and penalties, delay in approvals and
lengthy litigations.
Mahindra Lifespace Developers Ltd.

SOTP Valuation:

Scenario Segment Equity Value (Rs cr) Value/share - Rs

Devco residential 1,163 75
Industrial Parks & SEZs 1,217 79
Rental Income 388 25
Land Bank - 20% discount to market value 1,441 93

SOTP Valuation Add: New land BD NPV and Ghodbunder development value 1,832 118
Add: M&M Kandivali land NPV and 1yr of NPV for new BD as per guidance of Rs
5bn new land additions 458 30
Add: Wagholi land NPV 367 24
Add: Pimpri land NPV 500 32
Base Gross NAV 7,367 476
Add: NAV Premium of 52%* 3,853 249
Base Gross NAV (Rs /sh) 11,220 725
(*Premium of 44% considered to arrive at Base case Target of Rs 684)

Peer Comparison:
Revenue EBITDA Margin (%) APAT
Mcap (Rs cr)
FY23 FY24E FY25E FY26E FY23 FY24E FY25E FY26E FY23 FY24E FY25E FY26E
Mahindra Lifespace Developers 8,936 606.6 790.5 887.8 1005.0 -18.2 -11.7 9.2 11.2 42.1 52.1 180.5 216.7
Godrej Properties 67,157 2252 2590 2979 3425 11.0 14.3 16.0 17.6 571.4 631.6 663.0 737.0
Sobha Developers 14,435 3310 3362 3921 4576 12.0 10.2 16.1 17.6 104.2 95.1 323.3 469.3

RoE (%) P/E

FY23 FY24E FY25E FY26E FY23 FY24E FY25E FY26E
Mahindra Lifespace Developers 5.7 2.8 9.3 10.1 214.7 178.7 51.7 43.0
Godrej Properties 6.4 6.6 5.8 5.0 117.3 106.2 96.5 86.8
Sobha Developers 4.2 3.8 11.9 15.2 136.0 149.6 43.9 28.9
(Source: Company, HDFC sec)
 Mahindra Lifespace Developers Ltd.

Company Background
Mahindra Lifespace Developers Ltd (MLDL), established in 1994, is the real estate and infrastructure development business of the Mahindra Group. It operates mainly in two major segments -
residential development and integrated business cities. MLDL follows a mixed strategy of real estate development viz. industrials clusters, integrated cities, mid luxury, affordable housing. The
company operates in residential developments under the ‘Mahindra Lifespaces’ and ‘Mahindra Happinest’ brands; and its integrated cities and industrial clusters under the ‘Mahindra World City’
and ‘Origins by Mahindra World City’ brands. The company’s development footprint spans 32.97 million sq. ft. (msft) of completed, ongoing and forthcoming residential projects across seven Indian
cities; and over 5000 acres of ongoing and forthcoming projects under development/management at its integrated developments / industrial clusters across its locations.

The company’s focus on the residential business remains in the key Tier 1 Indian markets of Mumbai Metropolitan Region (MMR), National Capital Region (NCR), Pune, Bengaluru and Chennai. It
has completed 20.58 msft of residential projects and has 14.48 msft of ongoing and forthcoming projects as at Dec’23. In its Integrated Cities and Industrial Clusters (IC & IC) business, the
company targets corporates or industrial customers through its Mahindra World Cities in Chennai and Jaipur and Origins in Chennai, Ahmedabad and Pune. Two MWCs in Chennai and Jaipur and
Origins Chennai — have over 200 companies from over 20 countries. These industrial projects have a combined gross area of over 5,000 acres and a leasable potential of over 3,600 acres. MLDL is
scaling up its land acquisitions and approvals pipeline; building the organizational muscle for significant growth in the residential business.
Mahindra Lifespace Developers Ltd.

(Source: Company, HDFC sec)

 Mahindra Lifespace Developers Ltd.

Financials
Income Statement Balance Sheet
(Rs Cr) FY22 FY23 FY24E FY25E FY26E As at March FY22 FY23 FY24E FY25E FY26E
Net Revenues 393.6 606.6 790.5 887.8 1,005.0 SOURCE OF FUNDS
Growth (%) 136.7 54.1 30.3 12.3 13.2 Share Capital 154.5 154.7 154.7 154.7 154.7
Operating Expenses 483.0 716.7 882.7 806.0 892.8 Reserves 1634.0 1651.1 1703.2 1883.7 2100.4
EBITDA -89.5 -110.1 -92.1 81.8 112.2 Shareholders' Funds 1788.5 1805.8 1857.9 2038.4 2255.1
Growth (%) -4.3 -23.0 16.3 188.8 37.1 Minority's Interest 49.1 0.2 0.2 0.2 0.2
EBITDA Margin (%) -22.7 -18.2 -11.7 9.2 11.2 Long Term Debt 60.1 7.7 207.7 407.7 607.7
Depreciation 6.5 12.2 9.7 10.9 10.7 Net Deferred Taxes -78.9 -59.2 -59.2 -59.2 -59.2
EBIT -96.0 -69.4 -43.2 108.7 145.2 Long Term Provisions & Others 21.4 17.9 18.9 19.9 20.9
Other Income 14.7 53.0 58.6 37.8 43.7 Total Source of Funds 1840.2 1772.4 2025.5 2407.0 2824.7
Interest expenses 6.5 10.9 14.6 22.6 30.6 APPLICATION OF FUNDS
PBT -87.8 -80.3 -57.8 86.1 114.6 Net Block & Goodwill 103.5 36.6 36.9 35.9 35.3
Tax -62.4 2.8 0 21.5 28.7 CWIP 3.4 5.1 5.1 5.1 5.1
RPAT -25.4 101.4 52.1 180.5 216.7 Other Non-Current Assets 715.1 791.6 869.8 948.9 1028.8
Share of profit of JV/associates 90.3 118.1 109.9 115.9 130.8 Total Non-Current Assets 822.0 833.3 911.8 989.9 1069.2
APAT 17.3 42.1 52.1 180.5 216.7 Inventories 1441.9 2097.6 2307.3 2538.1 2791.9
Trade Receivables 91.9 129.1 122.6 116.5 110.7
Cash & Equivalents 225.5 77.4 178.4 398.5 643.8
Other Current Assets 377.3 414.2 579.9 811.9 1136.6
Total Current Assets 2136.6 2718.3 3188.3 3864.9 4683.0
Short-Term Borrowings 220.4 257.4 257.4 257.4 257.4
Trade Payables 173.3 191.8 287.7 431.6 647.4
Other Current Liab & Provisions 724.6 1329.9 1529.4 1758.8 2022.7
Total Current Liabilities 1118.3 1779.1 2074.6 2447.8 2927.5
Net Current Assets 1018.3 939.2 1113.7 1417.1 1755.5
Total Application of Funds 1840.2 1772.4 2025.5 2407.0 2824.7
(Source: Company, HDFC sec)
 Mahindra Lifespace Developers Ltd.

Cash Flow Statement Key Ratios

(Rs Cr) FY22 FY23 FY24E FY25E FY26E FY22 FY23 FY24E FY25E FY26E
Reported PBT + Share of JV 2.4 37.9 5.2 20.2 24.5 PROFITABILITY RATIOS (%)
Non-operating & EO items -84.9 -145.6 0.0 0.0 0.0 EBITDA Margin -22.7 -18.2 -11.7 9.2 11.2
Interest Expenses 6.5 10.9 14.6 22.6 30.6 APAT Margin 4.4 6.9 6.6 20.3 21.6
Depreciation 6.5 12.2 9.7 10.9 10.7 RoE 9.5 5.7 2.8 9.3 10.1
Working Capital Change 35.4 -52.0 -80.8 -91.3 -102.1 RoCE 1.0 2.5 3.0 7.9 8.2
Tax Paid -18.0 -11.7 0 -21.5 -28.7 Solvency Ratio (x)
OPERATING CASH FLOW ( a ) -52.0 -148.4 -4.4 122.7 156.0 Debt/EBITDA -3.1 -2.4 -5.0 8.1 7.7
Capex -1.2 -13.8 -10.0 -10.0 -10.0 Net D/E 0.0 0.1 0.2 0.1 0.1
Free Cash Flow -53.2 -162.2 -14.4 112.7 146.0 PER SHARE DATA (Rs)
Investments 124.5 41.7 -70.0 -70.0 -70.0 EPS 1.1 2.7 3.4 11.7 14.0
INVESTING CASH FLOW ( b ) 123.2 27.8 -80.0 -80.0 -80.0 CEPS 1.5 3.5 4.0 12.4 14.7
Debt Issuance / (Repaid) 30.7 26.2 200.0 200.0 200.0 Dividend 0.0 2.0 0.0 0.0 0.0
Interest Expenses -20.7 -22.6 -14.6 -22.6 -30.6 BVPS 115.7 116.8 120.1 131.8 145.8
FCFE -43.2 -89.1 101.0 220.1 245.3 Turnover Ratios (days)
Share Capital Issuance 2.5 0.4 0.0 0.0 0.0 Debtor days 69 66 58 49 41
Dividend -0.4 -31.1 0.0 0.0 0.0 Inventory days 1292 1065 1017 996 968
Others 0.0 0.0 0.0 0.0 0.0 Creditors days 143 110 111 148 196
FINANCING CASH FLOW ( c ) 12.2 -27.0 185.4 177.4 169.4 VALUATION
NET CASH FLOW (a+b+c) 83.4 -147.6 101.0 220.1 245.3 P/E (x) 521.5 214.7 178.7 51.7 43.0
P/BV (x) 5.5 5.1 5.0 4.6 4.1
Price chart EV/EBITDA (x) -101.5 -83.7 -104.4 117.2 85.1
650 Dividend Yield (%) 0.0 0.3 0.0 0.0 0.0
600 (Source: Company, HDFC sec)
550
500
450
400
350
300
250
200
 Mahindra Lifespace Developers Ltd.

HDFC Sec Retail Research Rating description

Green Rating stocks
This rating is given to stocks that represent large and established business having track record of decades and good reputation in the industry. They are industry leaders or have significant market share. They have
multiple streams of cash
flows and/or strong balance sheet to withstand downturn in economic cycle. These stocks offer moderate returns and at the same time are unlikely to suffer severe drawdown in their stock prices. These stocks can be
kept as a part of long term portfolio holding, if so desired. This stocks offer low risk and lower reward and are suitable for beginners. They offer stability to the portfolio.

Yellow Rating stocks

This rating is given to stocks that have strong balance sheet and are from relatively stable industries which are likely to remain relevant for long time and unlikely to be affected much by economic or technological
disruptions.
These stocks
have emerged stronger over time but are yet to reach the level of green rating stocks. They offer medium risk, medium return opportunities. Some of these have the potential to attain green rating over time.

Red Rating stocks

This rating is given to emerging companies which are riskier than their established peers. Their share price tends to be volatile though they offer high growth potential. They are susceptible to severe downturn in their
industry or in overall
economy. Management of these companies need to prove their mettle in handling cyclicality of their business. If they are successful in navigating challenges, the market rewards their shareholders with handsome
gains; otherwise their stock prices can take a severe beating. Overall these stocks offer high risk high return opportunities.

Disclosure:
I, Darshil Shah (CA, MBA), authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities.
SEBI conducted the inspection and based on their observations have issued advise/warning. The said observations have been complied with. We also certify that no part of our compensation was, is, or will be directly
or indirectly related to the specific recommendation(s) or view(s) in this report.
Research Analyst or his/her relative or HDFC Securities Ltd. does not have any financial interest in the subject company. Also Research Analyst or his relative or HDFC Securities Ltd. or its Associate may have
beneficial ownership of 1% or more in the subject company at the end of the month immediately preceding the date of publication of the Research Report. Further Research Analyst or his relative or HDFC Securities
Ltd. or its associate does not have any material conflict of interest.
Any holding in stock – No
HDFC Securities Limited (HSL) is a SEBI Registered Research Analyst having registration no. INH000002475.

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DARSHIL Digitally signed by

DARSHIL
HEMANTBH HEMANTBHAI SHAH
Date: 2024.04.22
AI SHAH 09:04:51 +05'30'