Mahindra Holidays & Resorts India Q1FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | April 29, 2016, midnight


SYNOPSIS

  • Mahindra Holidays & Resorts India Ltd (MHRIL), India’s leading player in the leisure hospitality industry, offers quality family holidays primarily through vacation ownership memberships.
  • Revenue for the quarter rose by 8.07% to Rs. 2496.69 million from Rs. 2310.30 million, when compared with the prior year period.
  • During Q1 F Y17, company’s net profit increased by 20.03% and stood at Rs. 302.44 million as against Rs. 251.97 million in the corresponding quarter ending of previous year.
  • During Q1 FY17, EBIDTA is Rs. 618.52 million as against Rs. 556.59 million in the corresponding period of the previous year, up by 11.13%.
  • During Q1 FY17, PBT increased by 25.47% to Rs. 468.23 million from Rs. 373.18 million in Q1 FY16.
  • EPS of the company stood at Rs. 3.43 a share in Q1 FY17 as against Rs. 2.86 in the corresponding quarter of the previous year.
  • The company has added 125 rooms during the quarter ended 3oth June, 2016, taking its total room inventory to 3004.
  • The company added 3,630 members during the quarter and cumulative member base at 203k~.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 15% over 2015 to 2018E respectively.


OUTLOOK AND CONCLUSION

  • At the current market price of Rs.452.00, the stock P/E ratio is at 27.84 X FY17E and 23.92 X FY18E respectively.
  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 16.23 and Rs. 18.90 respectively.
  • Net Sales and PAT of the company are expected to grow at a CAGR of 13% and 15% over 2015 to 2018E respectively.
  • On the basis of EV/EBITDA, the stock trades at 13.63 X for FY17E and 12.21 X for FY18E.
  • Price to Book Value of the stock is eXpected to be at 4.77 X and 3.98 X for FY17E and FY18E respectively.
  • Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.


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