Buy Mahindra Holidays; target of Rs 444: Edelweiss

Edelweiss is bullish on Mahindra Holidays has recommended buy rating on the stock with a target price of Rs 444 in its research report dated September 20, 2017.

September 22, 2017 / 11:42 IST

26 Aug, 2025 12:21

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Edelweiss' research report on Mahindra Holidays

In our follow-up interaction with Mr Kavinder Singh, MD & CEO, Mahindra Holidays (MHRL); (refer note), he reiterated MHRL’s rising focus on digital and referral channels to target suitable member-set, which will reduce cancellations and thus spur annuity income as well. MHRL has also stepped up its room expansion spree (set a property-wise target to add ~600 rooms over next 2 years) and continues to scout for further room addition opportunities. We believe MHRL’s focus on acquiring right quality members will bolster profitability along with moderation in receivables, in turn impelling cash generation. Maintain ‘BUY’.

Outlook

We believe MHRL’s focus on attracting and adding right quality members will lend impetus to profitability along with moderation in receivables, in turn boosting cash generation. We value standalone business using average DCF and P/E with subsidiaries valued separately. We maintain ‘BUY’ with TP of INR444.

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