Mahindra Holidays jumps on Budget push, Q3 results and management changes

Mahindra Group plans to grow the revenue of Mahindra Holidays & Resorts by 5x going forward

Shares of Mahindra Holidays and Resorts closed more than three percent higher on February 2 after rallying over 14 percent in early trade, but cooled off later in the day as the headline indices trimmed gains.

The rise sharp rise in Mahindra Holidays intraday came after Finance Minister Sitharaman in her Budget Speech made a special mention about the tourism sector, which is attracting a lot of interest from people across India.

Among the companies poised to benefit from the focus on this sector, Mahindra Holidays stands out as a potential multi-year tourism bet, according to analysts.

The Interim Budget has focused on the promotion of tourism, said FM in her Budget speech. States will be urged to build tourism destinations to attract tourists and foster local commercial prospects, and they will receive interest-free loans to promote tourism in their areas. "

All of these announcements will be beneficial for companies in the travel, tourism and hospitality space. Companies like IRCTC, EaseMyTrip, Yatra Online, Indian Hotel Company, and Mahindra Holidays and Resorts could be in the limelight," said Raj Gaikar, Research Analyst at SAMCO Securities.

Mahindra Holidays stock ended at Rs 419.90 on the NSE. In the last one year, the stock has zoomed over 65 percent, outperforming bechmark Nifty 50, which has risen around 24 percent during this period.

Follow our market blog to catch all the action

The rise in Mahindra Holidays' share price also comes after the company on February 2 reported its earnings for the quarter ended December 2023. Its Consolidated total income jumped 10 percent on year to Rs 656.7 crore and net profit (PAT) came in at Rs 10.5 crore, compared to a loss of Rs 13 crore in the year-ago quarter.

The company's EBITDA jumped eight percent YoY to Rs 130.5 crore and EBITDA Margin came in at 19.9 percent.

Meanwhile, Mahindra Group’s Chief Financial Officer Manoj Bhat will step down on May 16 to take over as the Managing Director and CEO of Mahindra Holidays Resorts India.

Bhat, who joined M&M in April 2021 from Tech Mahindra, has served as the CFO of Tech Mahindra since 2018. In his role as Group CFO, he has been instrumental in leading the group’s finance leadership team, the company said.

Also Read | SJVN, NHPC, Power Grid zoom to new highs on budgetary push

Mahindra Holidays board at its meeting held on February 2, also approved the appointment of Vimal Agarwal as the Chief Financial Officer (CFO) and Key Managerial Personnel under the Companies Act, 2013 with effect from May 1, 2024.

Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.