The real estate sector witnessed a boom in the year 2024. While the prices of houses, apartments and shops reached the sky, the shares of real estate companies listed in the stock market also made a lot of money for the investors. However, among these shares, there was one stock which disappointed its investors. While on one hand every big company in the real estate sector gave profits to its investors, this stock gave a negative return of 14 percent to its investors.

How was the condition of the real sector

In the year 2024, the real estate sector gave tremendous returns to investors. The Nifty Realty Index has gained 38% so far this year, while it grew 82% in 2023. This index has given positive returns five times out of the last 6 years. But amidst this great performance, the year 2024 was very disappointing for the investors of Mahindra Lifespace Developers.

The only loss making stock

9 out of 10 stocks included in the Nifty Realty Index have given positive returns in 2024. The profit rate in these stocks ranged from 15 percent to 63 percent. However, the stock of Mahindra Lifespace Developers has fallen 14 percent so far this year, making it the weakest performer in the index. This is the first time in the last four years that this stock has given negative returns in a year.

been a profitable deal in the past years

From 2021 to 2023, Mahindra Lifespace shares gave investors great profits. The stock doubled in 2021, while it grew 50% in 2022 and 2023. But 2024 is turning out to be the worst performing year for this stock, which is the biggest decline since 2018.

company performance

At the end of the September quarter, Mahindra Lifespace sold homes worth Rs 397 crore. Whereas, last year this figure was Rs 455 crore. However, the income from leasing definitely increased from Rs 32 crore to Rs 87 crore. At the same time, the company's net debt-to-equity ratio was 0.26 in the first half of this financial year. During this time, the company's collection at the end of the quarter was Rs 459 crore, taking the total collection of the first half to Rs 999 crore. However, the decline in the sale of homes increased the concern of investors.