Risk factor
Resilient to price shocks
Profitability factor
Favourable analyst view
About
Mahindra Holidays & Resorts India Limited is a prominent player in the leisure and hospitality industry. The company primarily focuses on selling vacation ownership programs and associated services. Its flagship offering, Club Mahindra (CMH25), grants members a week's annual holiday for 25 years. Additionally, it offers Club Mahindra Fundays, a corporate solution enabling businesses to provide vacation benefits to employees as part of reward schemes or employment terms. For those aged 50 and above, Bliss is a points-based product providing a weekly vacation for a decade. Millennial travelers under 30 can opt for GoZest, a three-year points-based membership. The company boasts an extensive network of resorts across varied Indian landscapes, including hill stations, beaches, backwaters, wildlife sanctuaries, forts, and heritage sites, alongside international locations such as Bangkok, Pattaya, Phuket, Kuala Lumpur, Singapore, Dubai, Colombo, and Bhutan. As of March 31, 2022, its portfolio included 4,568 room units spread across 84 resorts. Established in 1996, its operational base is Mumbai, India, and it functions as a subsidiary of Mahindra & Mahindra Limited.
Company Valuation
Based on key historical and expected multiples, the stock is overvalued relative to its peers. In particular, the stock is reasonably priced on P/E, of fair value on EV/E
Target Price
The average target price of MHRIL.NS is 350 and suggests 52.2% upside potential. Usually, this means a BUY recommendation among investment firms, or a recommendation to i