Why is Mahindra Lifespace Developers Ltd ?
1
With a Operating Losses, the company has a Weak Long Term Fundamental Strength
- Poor long term growth as Net Sales has grown by an annual rate of -12.69% and Operating profit at -312.82% over the last 5 years
- Company's ability to service its debt is weak with a poor EBIT to Interest (avg) ratio of -12.63
2
Flat results in Dec 24
- PAT(Q) At Rs -22.49 cr has Fallen at -174.9% (vs previous 4Q average)
- INTEREST(Latest six months) At Rs 11.24 cr has Grown at 30.24%
- PBT LESS OI(Q) Lowest at Rs -23.64 cr.
3
Stock is technically in a Bearish range
- The technical trend has deteriorated from Mildly Bearish on 07-Apr-25
- Multiple factors for the stock are Bearish like MACD, Bollinger Band and KST
4
Risky - Negative EBITDA
- The stock is trading risky as compared to its average historical valuations
- Over the past year, while the stock has generated a return of -52.60%, its profits have risen by 74.8% ; the PEG ratio of the company is 1.2
5
Below par performance in long term as well as near term
- Along with generating -52.60% returns in the last 1 year, the stock has also underperformed BSE 500 in the last 3 years, 1 year and 3 months
How much should you sell?
- All quantity irrespective of whether you are making profits or losses
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Construction - Real Estate)
When to re-enter? - We will constantly monitor the company and review our call based on new data
Is Mahindra Life for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Mahindra Life
-52.78%
-1.57
33.40%
SENSEX
0.45%
0.03
14.48%
Quality key factors
Factor
Value
Sales Growth (5y)
-12.69%
EBIT Growth (5y)
-312.82%
EBIT to Interest (avg)
-12.63
Debt to EBITDA (avg)
Negative Net Debt
Net Debt to Equity (avg)
0
Sales to Capital Employed (avg)
0.18
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
41.81%
Pledged Shares
0
Institutional Holding
29.65%
ROCE (avg)
-6.28%
ROE (avg)
2.53%
Valuation Key Factors 
Factor
Value
P/E Ratio
92
Industry P/E
36
Price to Book Value
2.41
EV to EBIT
-27.09
EV to EBITDA
-29.68
EV to Capital Employed
2.06
EV to Sales
13.28
PEG Ratio
1.24
Dividend Yield
0.91%
ROCE (Latest)
-8.17%
ROE (Latest)
6.56%
Loading Valuation Snapshot...
Technical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Bearish
Dow Theory
Mildly Bearish
Mildly Bearish
OBV
No Trend
Bullish
Technical Movement
13What is working for the Company
NET SALES(9M)
Higher at Rs 363.03 cr
PBDIT(Q)
Highest at Rs -25.40 cr.
OPERATING PROFIT TO NET SALES(Q)
Highest at -15.18%
-17What is not working for the Company
PAT(Q)
At Rs -22.49 cr has Fallen at -174.9% (vs previous 4Q average
INTEREST(Latest six months)
At Rs 11.24 cr has Grown at 30.24%
PBT LESS OI(Q)
Lowest at Rs -23.64 cr.
DEBT-EQUITY RATIO(HY)
Highest at 0.51 times
DEBTORS TURNOVER RATIO(HY)
Lowest at 1.74 times
EPS(Q)
Lowest at Rs -1.45
Loading Valuation Snapshot...
Here's what is working for Mahindra Life
Net Sales - Quarterly
At Rs 167.28 cr has Grown at 129.1% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 73.01 CrMOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Highest at Rs -25.40 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (Rs Cr)
Operating Profit Margin - Quarterly
Highest at -15.18%
in the last five quartersMOJO Watch
Company's efficiency has improved
Operating Profit to Sales
Here's what is not working for Mahindra Life
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -23.64 cr has Fallen at -841.1% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 3.19 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs -22.49 cr has Fallen at -174.9% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 30.05 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Lowest at Rs -23.64 cr. and Fallen
each quarter in the last five quartersMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Interest - Latest six months
At Rs 11.24 cr has Grown at 30.24%
over previous Half yearly periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Earnings per Share (EPS) - Quarterly
Lowest at Rs -1.45
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 0.51 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Debtors Turnover Ratio- Half Yearly
Lowest at 1.74 times
in the last five half yearly periodsMOJO Watch
Company's pace of settling its Debtors has slowed
Debtors Turnover Ratio