Mahindra Holidays IPO is opened for subscription and will close today. It IPO price band is at Rs 275-325 a share. Sandeep J Shah, CEO of Sampriti Capital said Mahindra Holidays certainly excited me as a theme but not as a stock and certainly not the valuations. He said, “On current valuations also it looks expensive. If the valuations were half of what they were offered at, it could be quite interesting.”

Here is a verbatim transcript of Sandeep J Shah, CEO, Sampriti Capital comments on CNBC-TV18. Also watch the accompanying video.

Mahindra Holidays certainly excites me as a theme but not as a stock and certainly not the valuations. I think there is some debate on how you should also look at the earnings because 40-60% of their income is booked in the first year whereas a lot of those expenses for that may come over the life of the asset which could be 10-20-25 years; so whether you should apportion the income and then look at it and even if you don’t, on current valuations also it looks expensive.

So not the kind of stock you want to buy, not the kind of valuations you want to buy for sure. If the valuations were half of what they were offered at, it could be quite interesting.