Mahindra Holidays Q3 Results Review - Healthy Financially, Moderate Operationally: Dolat Capital

Dolat Capital Report

Mahindra Holidays and Resorts India Ltd.’s Q3 FY23 was healthy financially ahead of estimates. Revenue/ Ebitda/adjusted profit after tax grew by a healthy 18/17/18% YoY.

In Q3 FY23, three-year compound annual growth rate of revenue/Ebitda/adjusted profit after tax stood at a healthy ~9/13/19% despite Covid.

Indian Hotels Company Ltd.'s three-year CAGR is 8/12/19%. However, operationally it was a tad soft new member additions at 4,176 versus 3,701/4,397 YoY/QoQ.

New member sales at Rs 1.9 billion (including upgrades of Rs 0.5 billion), up 20% YoY is positive.

We foresee Mahindra Holidays as a potential re-rating candidate over the next one-two years driven by healthy room additions and consequent member adds, potential turnaround in holiday club resorts and likely strategic sale in it to recoup investments as well as Mahindra Holiday’s entry into lucrative leisure hospitality business with large addressable market.

We increase our Ebitda estimates by 7-11% and earnings by 12-18% over FY23-25E to factor robust Q3 FY23E.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.