Mahindra Holidays fixed IPO price at Rs 300 a share. Dipan Mehta, Member, BSE/NSE said even at Rs 300 a share, it looked expensive. He was more comfortable at slightly lower levels, maybe around Rs 220-230 levels, which would be a good entry point for this company.

Here is a verbatim transcript of Member, BSE/NSE, Dipan Mehta’s comments on CNBC-TV18. Also watch the accompanying video.

Mahindra Holidays is a great company. But even at Rs 300 a share we thought it was a bit expensive. I think what was a bit disappointing was that for the last fiscal, which is FY09, then growth rates were quite disappointing. They were flat to lower profits, which mean that this business also is not immune to all the vagaries of the economy and the consumer spending habits.”

He added, “To have such a business being discounted at such a high price-earnings multiple was a bit discomforting. Maybe it is one of its kinds, maybe a bit of a concept stock. Therefore, you could see this kind of a pricing. And maybe the stock could trade slightly higher on listing. But I think we are more comfortable at slightly lower levels, maybe around Rs 220-230 levels, which would be a good entry point for this company.