Choice Equities Initiates BUY on Mahindra Lifespace, Eyes Rs 500 Target

REAL-ESTATE

Overview

Choice Institutional Equities has issued a strong BUY recommendation for Mahindra Lifespace Developers, setting a price target of Rs 500. The brokerage cited robust year-over-year growth in pre-sales (up 71.3%) and average selling price (up 28.4%) as key factors. Upcoming project approvals and new launches in Q4FY26 are expected to further bolster performance.

Mahindra Lifespace Developers's recent performance has captured the attention of analysts, with Choice Institutional Equities highlighting significant year-over-year improvements. The real estate firm recorded a substantial 71.3% surge in pre-sales and a 5.5% increase in collections. Average selling prices also saw a notable rise, climbing 28.4% compared to the previous year.

Exceptional Project Traction

A key driver for this growth is the Mahindra Blossom project in Hopefarm, Bengaluru, which achieved an exceptional INR 10 billion in sales over a single weekend, a figure expected to be recognized in the fourth quarter of fiscal year 2026. Furthermore, projects in Bhandup and Mahalaxmi are advancing towards final approval stages, signaling a healthy pipeline. The company anticipates new project launches within Q4FY26.

Sustained Outlook

Choice Institutional Equities maintains its positive stance, reiterating a BUY rating on Mahindra Lifespace Developers. The Rs 500 price target is underpinned by the company's diversified business segments, including its Residential Business, Integrated Cities & Industrial Clusters (IC&IC), and Operations & Maintenance (O&M) divisions. The firm's historical land bank also contributes to the valuation.

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