Recommendation from infrastructure development company and Book publishing company

The scrips in this column have been recommended with a 15-day investment horizon in mind and carry high risk. Therefore, investors are advised to take into account their risk appetite before investing, as fundamentals may or may not back the recommendations.

MAHINDRA LIFESPACE DEVELOPERS LTD.
CMP - ₹427.55
BSE CODE 532313
Volume 17,690
Face Value ₹10
Target ₹470-480
Stoploss ₹410 (CLS)

Real estate and infrastructure development are two areas that Mahindra Lifespace Developers Ltd. specialises in. The firm is involved in integrated cities and industrial clusters under the Mahindra World City, as well as residential complexes under the ‘Mahindra Lifespaces’ and ‘Happinest’ brands. The business has built properties all over India. The company’s quarterly consolidated financials reveal that the operating loss for Q1FY23 is ₹9.17 crore as compared to ₹18.19 crore for Q1FY22. The net sales for Q1FY23 were at ₹94.55 crore, recording a decline of 36.21 per cent as compared to net sales of ₹148.21 crore in the same quarter last year. The net profit has slightly reduced and stands at ₹12.88 crore since the net loss of ₹15.48 crore in Q1FY22. New launches for the rest of the year are projected to cost ₹1,200-1,500 crore with Kandivali and Pimpri lands contributing ₹500 crore apiece. The company exhibits great potential on account of the residential business upcycle, a strong balance-sheet, a reliable brand reputation and a strong business development pipeline. Hence, we recommend BUY.

Navneet Education Limited
CMP - ₹131.55
BSE CODE 508989
Volume 1,79,869 Face
Value ₹2 Target ₹140-147
Stoploss ₹118 (CLS)

Navneet Education manufactures stationery, general books and children’s books in multiple Indian and foreign languages, making it a dominant player in the field of publishing. The company’s quarterly consolidated financials reveal that the operating profit for Q1FY23 is ₹199.54 crore as compared to ₹65.44 crore for Q1FY22. This shows an impressive increase of 204.92 per cent. Net sales for Q1FY23 were at ₹693.74 crore, recording an increase of 111.6 per cent as compared to net sales of ₹327.85 crore in the same quarter last year. The net profit has jumped to ₹133.76 crore since the same period which was at ₹36.48 crore in Q1FY22, a stellar growth by 266.67 per cent. The company has increased its emphasis on education technology since the pandemic. In addition to investing in SFA, distinct SBUs have been established, and Navneet Future Tech is currently employing explicitly. And its margins from publishing have reached the pre-pandemic levels. Hence, we recommend BUY.