Mahindra Holidays & Resorts India Q2FY17: Fundamental Analysis - Firstcall India Equity

Firstcall India Equity | May 11, 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.

  • During Q2 F Y17, the company’s net profit increased by 22.02% and stood at Rs. 328.68 mn as against Rs.269.36 mn in Q2 FY16.

  • Revenue for the quarter rose by 10.02% to Rs.2580.72 mn from Rs. 2345.61 mn, when compared with the prior year period.

  • During Q2 FY17, EBIDTA is Rs. 644.83 mn as against Rs. 572.82 mn in the corresponding period of the previous year, up by 12.57%.

  • During Q2 FY17, PBT increased by 23.56% to Rs.492.10 mn from Rs. 398.27 mn in Q2 FY16.

  • EPS of the company stood at Rs. 3.73 a share in Q2 FY17 as against Rs. 3.06 in the corresponding quarter of the previous year.

  • The company added 4,314 members during the quarter and cumulative member base at 207k~.

  • Revenues for H1 FY2016-17 increased to Rs.5077.41 mn from Rs. 4655.91 mn in H1 FY2015-16.

  • During the H1 FY17, Net Profit stood at Rs. 631.12 mn as compared to Rs. 521.33 mn in the previous year same period, up by 21.06%.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 13% over 2015 to 2018E respectively.

 

OUTLOOK AND CONCLUSION:

  • At the current market price of Rs.395.20, the stock P/E ratio is at 25.95 X FY17E and 22.70 X FY18E respectively.

  • Earning per share (EPS) of the company for the earnings for FY17E and FY18E is seen at Rs. 15.23 and Rs. 17.41 respectively.

  • Net Sales and PAT of the company are expected to grow at a CAGR of 11% and 13% over 2015 to 2018E respectively.

  • On the basis of EV/EBITDA, the stock trades at 12.80 X for FY17E and 11.65 X for FY18E.

  • Price to Book Value of the stock is eXpected to be at 4.22 X and 3.56 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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