Buy Mahindra Holidays & Resorts; target of Rs 556: Edelweiss

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

live

• bselive
• nselive

Volume

Todays L/H

More

×

Edelweiss' research report on Mahindra Holidays & Resorts

Mahindra Holidays & Resorts’ (MHRL) Q4FY17 revenue, at INR 3.1bn, jumped 26% YoY. The spurt was driven by healthy member addition of 6,177 (up 27% YoY), highest in the past 5 quarters, propelling FY17 member addition growth to 14% (9% till 9mFY17). Management attributed this primarily to culmination of steps taken in previous quarters.

Outlook

While stable member addition will spur MHRL’s growth, the company’s focus on driving right member additions will enhance share of annuity income along with moderation in receivables, spurring cash generation. We value MHRL’s standalone business and subsidiaries separately yielding target price of INR556. Maintain ‘BUY’.

For all recommendations, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More