Shares of Mahindra Lifespace Developers hit a record high of Rs 439.85 and jumped 6% on BSE in intraday trading on Monday, expecting a favorable demand situation in India’s real estate sector. .
Mahindra Group company‘s share has surpassed its previous high of Rs 435 which it reached on June 13, 2022. So far in 2022, the real estate company‘s market price has soared by 81%, against a decline 9% of the S&P ESB Sensex.
Analysts believe that Mahindra Lifespace is well positioned to take advantage of this environment, to expand further, with strong additions in the land bank for residential projects and plug-and-play infrastructure across multiple corridors in the industrial sector. . That said, it also has a strong balance sheet and the ability to raise capital on competitive terms to fund its growth aspirations.
“The successful deployment of technology and innovative construction techniques to increase efficiency; its focus on sustainability and the creation of differentiated offerings; and its ability to build motivated teams and a high-performing organization distinguish the company from its peers – and signal its inherent potential to move onto a higher growth trajectory. Accordingly, we remain optimistic about the company’s outlook for 2022-23,” the company said.
That aside, although demand for residential developments slowed in the first quarter of FY22, it recovered after the lockdown and covid-19 restrictions were lifted. As the year progressed, the company saw strong demand in the second half of the year.
Mahindra Lifespace’s development footprint spans 29.9 million square feet (2.78 million square meters) of completed, ongoing and upcoming residential projects across six Indian cities. Mahindra Lifespaces’ development portfolio includes high-end residential projects; valuable houses under the “Mahindra Happinest®” brand; and integrated cities and industrial clusters under the “Mahindra World City” and “Origins by Mahindra” brands, respectively.