All set to press execution button
We attended M&M investor day today where we met management of MLDL. Key takeaways include a clear five-year aspiration to break into the top-5 developers in their core markets (Mumbai, Bengaluru, Pune) and prioritising deep regional strength over broad but shallow national presence. To drive this, MLDL has identified five growth pillars: (1) disciplined BD with focus on premium, high-absorption micro-markets; (2) contemporary, pragmatic, and sustainability-led design that enables profitable projects from day one; (3) bestin-class customer experience across the full lifecycle from project entry to fouryear construction, delivery, and post-handover; and (4) rigorous financial planning to ensure sustained balance-sheet strength. The last five years have seen strong traction, where sales have grown 4x, GDV additions increased ~18x, free cash flow has remained healthy, and ~95% of projects have been delivered on time. The residential pipeline has been significantly strengthened; management is targeting ~3x growth in residential development over the next five years. Upcoming launches across Mumbai, Pune, Bengaluru, and Chennai, supported by society redevelopment wins in Mumbai, give strong visibility to achieving INR 45-50bn bookings in the near term and building a pathway toward INR 100bn. MLDL’s primary focus on mid-premium homes ensures resilience in a more normalized market. Additionally, the IC&IC business is expected to generate INR 15bn PAT over the next 10 years, offering an additional lever for long-term profitability and cash flows. Given the strong cash flows, robust launch pipeline, stable balance sheet, and likely growth funds through rights, we remain constructive with a BUY on MLDL and a TP of INR 700/sh.
▪ Launch heavy H2FY26: Building on the exceptional FYTD26 business development of INR 95bn, MLDL’s aggressive growth trajectory is set to accelerate significantly in H2FY26, backed by a robust pipeline of planned new launches worth INR 65bn. This period will see a major shift from the smaller, sustenance-driven sales of H1FY26 to large-scale project initiations, including Bhandup, Mahalaxmi, and Hope Farm. The momentum is further amplified by a crucial milestone: the Thane project, which has finally secured its DP approval. This unlock allows MLDL to finally develop a prime residential asset with a substantial GDV of INR 70bn (may re-rate upwards of INR 100bn), adding a major high-value component to its future launch schedule and solidifying the foundation for achieving its FY29 presales ambition.
▪ Well-poised for growth with launch heavy year ahead: MLDL has several levers to growth as 1. several projects are now in the final stages of design and approvals, primed for launch in FY26; 2. it has increasing focus on mid-premium and premium segments, where its brand and execution capabilities offer differentiation and 3. MLDL has become developer of choice for MMR redevelopment pipeline with some large society wins in the kitty and this may continue to supplement GDV addition in less capex intensive way.
Mahindra Lifespace – Update – Nov25 – HSIE-202511210710569506618
