Mahindra Lifespace Developers: New Projects Fuel Price Surge to ₹500 Target by Choice!

Choice, a research firm, has published a report on Mahindra Lifespace Developers Limited (MLIFE), highlighting significant growth potential. The report focuses on two major upcoming projects in Thane and Bhandup, which together account for INR 70-80 billion and INR 120 billion in Gross Development Value (GDV) respectively. These projects represent 45% of MLIFE's total projected GDV of INR 450 billion. The company is targeting the mid-premium to premium real estate market in these locations. These developments will be launched in phases and include a mix of residential and commercial spaces. The Bhandup project is in its final approval stages and is anticipated to launch in the fourth quarter of the financial year 2026 (Q4FY26).

Impact The analyst firm has used a Sum-of-the-Parts (SOTP) valuation approach, which involves valuing each of the company's business segments separately and then aggregating them. This method, combined with factoring in the residential business, Integrated Cities & Industrial Clusters (IC&IC), Operations & Maintenance (O&M) segments, and the company's land bank, has led to a target price of INR 500 for the stock. This positive outlook from a research house could attract investor interest and potentially drive the stock price upwards towards the target. Rating: 7/10

Difficult Terms: GDV (Gross Development Value): This is the total revenue a developer expects to earn from selling all the units within a real estate project upon its completion. SOTP (Sum-of-the-Parts): A valuation method where the total worth of a company is determined by adding up the estimated values of its individual business units or assets. Q4FY26: Refers to the fourth quarter of the financial year 2025-2026, typically spanning January to March.