Thursday, October 09, 2014

Buy Mahindra Holidays with a target of 340

Buy Mahindra Holidays

About Mahindra Holidays
It is a timeshare holiday company. It has 171000 customers. The hotels of the company have occupancy rate of 85% which is very high. Most of the properties owned by club mahindra have 4 or 5 star ratings.

Share
The company share is currently trading at 27 PE which is lower than industry Pe of 40.
Sales have increased by 19% YOY and 4% QOQ
Price to sales ratio have remained stable at 2.71

The company has a very good business model and with Indian economy becoming better chances of the company doing well is also very high.

I give it a buy rating with a target of 340.

It can become a very good dividend paying stock in the long run.

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