InvestorQ : I am looking to buy realty stocks and can I buy Mahindra Life Spaces which announced fairly attractive results on 23rd April?
Mahima Roy made post

I am looking to buy realty stocks and can I buy Mahindra Life Spaces which announced fairly attractive results on 23rd April?

Answer
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Aditi Sharma answered.
1 year ago


Fourth quarter results of Mahindra Life Spaces

The company reported 44% increase in total sales to Rs.234 crore for the fourth quarter. However, the company reported sharply negative growth in EBITDA and in net profits as pressure from operating cost put strain on the profits of the company. While net profit was down by 35% in the quarter, the EBITDA was down by 50%, which is not a very good operational sign. However, the stock already corrected 16% in the last 6 months and hence the downside risk may not really be substantial.

Is Mahindra Life Spaces a good buy in the realty space?

In the last one year, the stock price of Mahindra Life has fallen by nearly half. With promoters of pedigree and a series of new projects coming up across India, Mahindra Life Spaces could be best poised to capitalize on the revival in real estate stocks. Of course, even after the correction, the stock still quotes at around 30 times earnings, but it has sustained high P/E for long. It will be a better position to manage the credit downturn and we suggest buying the stock at current prices from a long term investment perspective.