In the past 6 trading sessions, the Mahindra Lifespaces has lost over 11% and yesterday, it went on to hit a new 52-week low at Rs.349.80. But today, it bounced back, opening in the green at Rs.367.75, its current intraday high. It soon lost its steam and is now back in the red at Rs.351 levels, closer to its 52-week low.
The initial spike up in the stock price was only on account of the news which the company published last evening. It said that the application filed by Mahindra World City Developers Ltd (MWCDL), a subsidiary of the company and the developer of the SEZ at Mahindra World City, Chennai, the Ministry of Commerce and Industry (MOCI) has been granted approval.
This approval is for partial denotification of 55.90 hectares (De-notified Land) in the non-processing area. This De-notified Land is a part of approx 89 hectares which was leased earlier to another subsidiary of the company, Mahindra Integrated Township Ltd for undertaking residential developments in the part of non-processing area.
Given the current state of the realty sector and the poor show of the company in Q3, looks like reality stayed intact and the stock price soon fizzled out, like the fizz out of an open soda can.