Edelweiss is bullish on Mahindra Holidays and Resorts has recommended buy rating on the stock with a target price of Rs 444 in its research report dated August 03, 2017.
Edelweiss' research report on Mahindra Holidays and Resorts
Mahindra Holidays & Resorts’ (MHRL) Q1FY18 revenue, at INR 2.7bn, grew 8% YoY driven by 10% YoY jump in member addition to 4,005. While employee expenses rose a sharp 28% YoY, lower sales & marketing spends due to savings in digital marketing led to flat EBITDA at INR 573mn. Driven by higher other income, PAT rose 7% YoY to INR 323mn. It added 55 rooms in Q1FY18 at Naldhera.
While the stock has run-up recently, we believe MHRL’s focus on adding right quality members will spur profitability along with moderation in receivables, boosting cash generation. Considering the debt-free nature along with expected cash flow generation potential in the long run, we change our valuation methodology for the standalone business to an average of P/E and DCF, giving us TP of INR 444. We maintain ‘BUY’.Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India's leading expert on wealth building, has created a strategy which makes it possible... in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.