Buy Mahindra Holidays & Resorts India, target price Rs 400: ICICI Direct

ICICI Direct has buy call on Mahindra Holidays & Resorts India with a target price of Rs 400. The current market price of Mahindra Holidays & Resorts India is Rs 317.85. Time period given by analyst is a year when Mahindra Holidays & Resorts India price can reach defined target.

Mahindra Holidays & Resorts India, incorporated in the year 1996, is a Mid Cap company (having a market cap of Rs 6434.17 Crore) operating in Tourism & Hospitality sector.

Mahindra Holidays & Resorts India key Products/Revenue Segments include Income from Vacation Ownership, Subscription Income, Beverages & Food, Other Operating Revenue, Income (Room Rent), Others and Wine & Liquor for the year ending 31-Mar-2023.


Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 735.27 Crore, up 17.75 % from last quarter Total Income of Rs 624.44 Crore and up 26.16 % from last year same quarter Total Income of Rs 582.83 Crore. Company has reported net profit after tax of Rs 56.20 Crore in latest quarter.

Investment Rationale
MHRIL is expected to be a key beneficiary of strong industry tailwinds such as robust recovery in room occupancies, an expanding aspirational consumer segment and low penetration of VO market in India (~2% vs. 11%in USA) providing significant headroom for growth. Furthermore, sustained inflation in average room rates is expected to drive demand for VO model.

Promoter/FII Holdings
Promoters held 67 per cent stake in the company as of 31-Mar-2023, while FIIs owned 5.12 per cent, DIIs 8.13 per cent.