Mahindra Holidays may test Rs 500: Rajen Shah

Rajen Shah of Angel Broking told CNBC-TV18, "I was looking at November 2010 when we touched 21000 and right now we are in November 2013, so it is three years and we are at the same level. However if you see Mahindra Holidays, in November 2010 was at Rs 500, today it is at about Rs 220-230. This company came out with a issue sometime in 2010 and at that point of time it came out with a issue at Rs 300. It had 110000 members then, today they have got 165000 members."

"Number of members has gone up by 50 percent. If one sees the number of resorts, they had 30 resorts then, today they have got 43 resorts. So again number of resorts has gone up by 40 percent. Number of members up by 50 percent and number of resorts up by 40 percent. If someone sees the room inventory, they had 1600 rooms then and today they have almost 2500 rooms. So, number of rooms have again gone by up by 50 percent," he said. "However logically the stock should have gone up by 50 percent from Rs 300 to Rs 450 but it is quoting at Rs 230. So, this is the irrationality in the market, last quarter they did very well and I think they should do exceptionally well in the coming years because they are now looking at global acquisitions. They have already bought couple of resorts one in Malaysia, one in Sri Lanka, one in Dubai and one in Austria. I think they are expanding globally and this stock at about Rs 230 levels would touch that November 2010 levels of Rs 500 probably in the next 24 months."