Despite weak market sentiments, this Mahindra and Mahindra parentage realty stock surged 5.01% on August 19

The company borrows funds at a 20% lower rate than its peers.

On August 19, the market was trading flat, however, after 10:30 am, it showed a sharp correction. At 12:45 pm, the S&P BSE Sensex is 59704.33, down 0.98% from its previous close of Rs 471.3. Regarding sectoral performance, IT remains sold, while Reality is the top loser today. 

Despite the Realty sector performing weak today, Mahindra Lifespace Developers Ltd is among the top gainers in the BSE group ‘A’. The shares of Mahindra Lifespace Developers Ltd made a 52-week high and all-time high. At 12:45 pm, the stock is trading at Rs 494.9, up more than 5.01% from its previous close of Rs 471. 

Mahindra Lifespace Developers Ltd is involved in the business of designing, developing, constructing, and marketing residential and commercial projects, and developing real estate, residential properties, and commercial buildings. It operates under two segments- Residential and Integrated Cities & Industrial Clusters (IC & IC). The company has 25 years of experience operating the business. It has served more than 14500 residential customers with 44 completed residential projects. 

The company has a strong linkage with Mahindra & Mahindra Ltd. This allows the company to borrow funds at a 20% lower rate than its peers. 

However, the company’s Q1 FY23 results remain weak. The consolidated revenue declined by 36.21% from Rs 148.21 crore in Q1FY22 to Rs 94.55 crore in Q1FY23. However, the company reported a net profit of Rs 75.41 crore, as against a net loss of Rs 13.87 crore in the same quarter of last fiscal. 

About the shareholding pattern, 51.33% stake of the company is owned by the promoters, 10.66% by FIIs, 18.92 % by DIIs, and the rest 19.15% by non-institutional investors. 

The company has a market capitalisation of Rs 7665 crore and is trading at a PE multiple of 57.98x as per June quarterly ending. The stock has a 52-week high and low of Rs 523.5 and Rs 218.65, respectively.