Built To Last: How Mahindra Lifespace Yielded 5960% Returns In 20 Years

Published by Trinkerr Academy on

If you had invested ₹1 lakh in this stock in 2002, you could have had ₹60 lakhs now! This real-estate multibagger has given its investors 5960% returns in 20 years. This wonder stock is Mahindra Lifespace Developers Ltd., a Mumbai-based Indian real estate and infrastructure development firm.

💼 Stock: Mahindra Lifespace Developers Ltd.


💪🏽 A Strong Foundation
The company was established in 1994 and is a subsidiary of the Mahindra Group. The Mahindra Lifespace and Happinest brands are used for residential complexes, while the ‘Mahindra World City’ and ‘ORIGINS by Mahindra World City’ names are used for integrated cities and industrial clusters. The company has built properties in Mumbai, Pune, Nagpur, Ahmedabad, Delhi NCR, Jaipur, Hyderabad, Chennai and Bengaluru, among other places. On July 12, 2002, the price of each share of this company was ₹7.01 as opposed to the current price of ₹424.85.

🎯 Specialties
MLDL, along with its subsidiary companies is engaged in various infrastructure projects including the development of Special Economic Zones (SEZs) and the development of real estate residential projects in the mid-premium and affordable housing segments in integrated cities and industrial clusters. It is running on the platforms of design development construction and marketing of residential and commercial projects.

⭐ Major Ventures
▪️ 2000-2001: Entered into a Joint Venture with Regus PLC U.K. and also incorporated one JV Company in India to provide operation of business centres initially in major cities such as Delhi Mumbai and Bangalore.

▪️ 2001: Dalmia sold their 10.5% stake to Sheth-Mahindra and in lieu of that GESCO became a subsidiary of Mahindra & Mahindra.

▪️ 2007-08: Made its foray into international; MLDL had signed an MoU with the Board of Investments of Sri Lanka. On 12 may 2000 the shares of the company were trading at ₹3.92. The company has given a massive return of 10428.06% since then.

🏆Awards & Achievements
▪️ The Golden Peacock National Quality Award in 2007
▪️ CNBC Awaaz CRISIL Real Estate Awards 2007 for the most transparent system

📈 Growth Potential
▪️ Virtually debt-free
▪️ Has a healthy liquidity position with a current ratio of 2.47
▪️ Has a high promoter holding of 51.33%
▪️ Has a strong degree of Operating leverage, Average Operating leverage stands at 9.05


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