Stock Outlook and Returns Over the Years
Given MLDL’s given price target, the stock could be giving up as much as a 57% return on investment if bought at current market prices. MLDL shares on NSE were last traded at Rs 383.80 apiece on the NSE, up 2.12 per cent from their last close.
The stock touched a 52-week high of Rs 550.75 on September 12, 2022 and a 52-week low of Rs 2,18.50 on December 27, 2021, respectively. It has a market capitalization of Rs 49,410.98 crore.
The stock has delivered a positive return of 5.35% over the past 1 week. However, it has lost 2.87% and 23.88% in the past 1 month and 3 months, respectively. Over the past year, it has given a positive return of 56.37%. The stock has returned 199.49% and 135.41% over 3 and 5 years, respectively.
FY2023 Q3 launch on track with good response
MLDL remains on track with regards to its Q3 FY2023 launch. Phase 1 of the Castle in Pune has a built-up area of over 0.5 sq. ft. and was pre-launched in mid-November with good response. Also, food sales are expected to remain healthy with the launch of Mahindra Eden Phase 2, Mahindra Happinest MWC Chennai and the re-launch of Happinest Kalyan 2 during the quarter.
H2’s pre-sales and collection goals can be achieved
Apart from the launch in the third quarter of FY23, the company remains on track to launch the planned development of the second phase of MWC Chennai and Mahindra Nestalgia in the fourth quarter of FY23. After crossing the Rupee. 100 crore pre-sale and Rs. 5.5 billion collectibles in the first half of fiscal year 2023, it is expected to maintain strong pre-sale momentum in the second half of fiscal year 2023 due to adherence to the release schedule and improved execution rate.
Actis JV – Development rental income
The company became a joint venture partner of the Actis entity through the formation of an SPV that will develop 2msf of industrial and logistics real estate facilities starting from Jaipur and Chennai. The total investment (including debt) in the business in the first few years is estimated at Rs. 22 billion.
Sharekhan reserved Buy, PT Rs unchanged. 600
MLDL has corrected roughly 30% over the past two-plus months, in line with broader corrections in the real estate index and four consecutive quarters of reporting losses from continuing operations and zero business development activity closed after April 2022. “The correction presents a strong buying opportunity as we expect it to remain on track in fiscal 2023 in terms of pre-sales, collections and business development. We expect revenue recognition to catch up as new projects are handed over. Corporate and The development of the Service Center (DESH) bill is expected to give a further boost to its IC&IC business. Considering the strong growth potential of its residential and IC&IC businesses, we retain our BUY rating on the stock, unchanged PT at Rs 600,” sharekhan said .
main risk – Weak macroeconomic environment has led to stagnant industry growth trends.
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