Mahindra Holiday Q4 Results Review - Set For Take-Off: Dolat Capital

Dolat Capital Report

Mahindra Holidays & Resorts India Ltd. Q4 FY24 operating performance was healthy with better-thanexpected gross member additions. Financials were moderate with in-line Revenues. Ebitda/adjusted profit after tax was lower due to higher opex. Standalone revenue/Ebitda/adjusted profit after tax grew by 11/5/-5% YoY.

We see Mahindra Holidays as a multi-year story with defensive characteristics driven by healthy room and thus member additions. These shall be aided by a turnaround in Holiday Club Resorts Oy and likely strategic sale in it to recoup investments. We ascribe nil value to HCRO.

Broadly maintain estimates. Reiterate 'Buy' with revised target price of Rs 600 on discounted cash flow basis (versus. Rs 435 earlier at 18 times FY26E enterprise value/Ebitda).

Accelerated member adds / membership value growth is key trigger.

Considering the strong but backended business model we now value Mahindra Holidays on discounted cash flow versus enterprise value/Ebitda.

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