This Mahindra group stock may surge 20% in 9 months, says HDFC Securities

HDFC Securities stock recommendations: Mahindra Lifespace share price has remained in base building mode after climbing to life-time high of 550.75 apiece levels on NSE in September 2022. From September 2022 to end of January 2023, this Mahindra group stock remained under profit booking pressure and came below at around 345 apiece levels. However, in last one month, this stock has given sharp upside movement that has attracted attention of stock market experts and retail investors. As per the HDFC Securities report, Mahindra Lifespace share price may ascend up to 459 per share levels in coming two to three quarters.

Mahindra Lifespace share price is currently around 386 per share levels and Mahindra Lifespace share price target given by the HDFC Securities is 459 per share, which means the brokerage is expecting around 20 per cent return from the stock in next two to three quarters.

Unveiling investment strategy in regard to Mahindra Lifespace shares, HDFC Securities report says, “Mahindra Lifespace Developers is well placed to leverage the tailwinds in industrial business and plug-and-play infrastructure across multiple corridors and upcycle in residential business with strong additions in land bank for residential projects. MLDL is one of the few organised players with a strong balance sheet and benefits from attractive cost of capital which enhances its competitive position.”

The brokerage went on to add that with presence in 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.

On suggestion to positional investors in regard to Mahindra Lifespace shares, HDFC Securities said, “We are positive on the company and have arrived at NAV-based base case target price of 438 and bull case target of 459 over the next two-three quarters. Investors can buy the stock in the band of 382-390 and add more on dips to 330-337 band.”

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.

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