Mahindra Lifespaces - March 2013 Results Preview - Motilal Oswal

- Standalone numbers to decline YoY: We expect standalone revenue to decline 30% YoY to ~INR1b, EBITDA to decline 29% YoY to INR227m and PAT to decline 10% YoY to INR290m.

- No new launches in 4Q: MLIFE did not launch any project in 4QFY13. In 3QFY13, it made an entry into the Hyderabad market, with the launch of a premium residential project, Ashvita at Kukatpally at INR3,900/sf.

- Pre-sales to remain stable QoQ: We expect pre-sales momentum to remain stable QoQ. We estimate annual pre-sales of INR4.5b (v/s INR2.9b in 9MFY13 and INR5.9b in FY12).

- Bought back stake in MRDL from Arch Capital: In March 2013, MLIFE bought back the 49% stake of Arch Capital in MRDL (holding company of Aqualily Projects) at an indicative price of ~INR700m (media sources).

- Valuation and view: The stock trades at ~30% discount to our one-year forward SOTP value of INR538/share, 9.3x FY15E EPS of INR41.1, and 1x FY15E BV. Maintain Buy.

Source : Equity Bulls

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