Mahindra Lifespace Developers – Multibagger Analysis

Mahindra Lifespace Developers – Multibagger Analysis

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Mahindra Lifespaces has been at the forefront of transforming urban landscapes by creating sustainable communities and is India’s first Green Homes developer. With this philosophy deeply engrained, we espouse Green Design and Healthy Living as the foundations of all our projects. One of the first companies to receive the Platinum rated green homes pre-certification from IGBC, today all the residential projects are pre-certified green buildings by IGBC.

The Company’s pan-India presence and the development of India’s first integrated business city have all contributed to Mahindra Lifespaces being recognised as a developer with a pioneering spirit internationally and in India.

Mahindra Lifespace Developers Ltd, the real estate development business of the $16.5 billion Mahindra Group, is a leader in sustainable urbanization, through the creation of residential and integrated large format development across India. Mahindra Lifespaces has a footprint of over 7.3 million sq ft of completed projects and over 11.3 million sq ft of ongoing and forthcoming projects. The company has pioneered the concept of an integrated business city through ‘Mahindra World City’ developments in Chennai and Jaipur. These developments cover 4,375 acres and house over 100 reputed global companies, providing an integrated environment for Life, Living and Livelihood. The company’s residential footprint spans across Mumbai, Pune, Delhi NCR, Nagpur, Hyderabad, Chennai and is poised to venture into Bengaluru.

Company URL: http://www.mahindralifespaces.com/

Screener URL: http://www.screener.in/company/?q=532313&con=1

CMP: 550.00

Fundamental Study: LINK 1 LINK 2

Warren Buffett Checklist

History of Consistently Increasing Sales, Earnings & Cash Flow

Yes. image

Durable Competitive Advantage

Green Development.  Brand.  Yes. image

Future Growth Drivers

Urbanization, 2 Year expected Real Estate Boom in India. image

Conservative Debt (long term debt < 3 Net Profit)

Yes. image

Debt Equity Ratio, Current Ratio

Debt Equity Ratio is 0.9 which is higher.  Current ratio is good. image

Return on Equity must be Above Average

ROE is 8% only. image

Low CAPEX required to maintain current operations

Not. image

Management is holding / buying the stock

Promoter holding is 50%.  Decreased holdings from past 2 years. image

Price is Under Valued (< intrinsic value)

Considering recent jumps in quarterly results, Yes. image

Stock Price is consolidating (now)

Yes. image

Stock Price is growing in past years along with EPS growth

Yes. image

Additional Futurecaps Checklist

Consolidated PE, PB Ratio

PE 28 (bad), PB 1.8 which are good.  Projected PE is < 10 for trailing year. image

Cash Flow Positive, Net Profit % greater than 8%

No. Yes. image

Paying Dividends, Tax

Yes. image

EPS Growth Rate

10%, –30%, 120% image

Jump in Trailing Results

Yes image

Quarterly Results Growing

Yes.  Huge jump in quarterly profit & EPS – watch for sale of projects.  This may be seasonal only & not consistent. image

Expected Gain in 2 Years

Taking standard growth level of 50% for next 2 years, we expect stock to triple. image

Price Movement Graph, 52 Week High & Low

Good. image

Volume Analysis

Good around 15k. image

Power of Brand

Yes. Part of Mahindra group of companies. image

Corporate Governance, Reputation of Leaders

Yes. image

Fraud reported

Not in current search. image

Declaration

The stock is multibagger.

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Allocation

3-4% of your portfolio.

Warning

We expect Indian Real Estate to go boom in next 2 years & bust there after.  Good to hold for 2 years & exit the stock for re-enter at bottom after 4 years.  Please add your studies too.

Disclaimer

Futurecaps recommends 20 to 25 multibaggers per year, we recommend a 25% to 50% allocation of your savings in equity.  The stocks recommended here are gone through Analysts of several years experience in stock market.  Although they were successful in predicting future multibaggers, the overall stock market is a risky game.  So we recommend the reader to put his/her own thoughts & invest wisely.

One Reply to “Mahindra Lifespace Developers – Multibagger Analysis”

  1. sir i am new to this blog . the style of analysis is very impressive . sir iam already holding kprmills 500 quantity at 100. should i continue to hold or sell . does it have a multibagger potential? please reply chinmoy

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