Comments
Bonanza
Mahindra
Holidays (Buy)
CMP: ₹468.20
Target: ₹545
Mahindra Holidays & Resorts India Ltd (MHRIL) operates in leisure hospitality industry. The quarter ending December was indeed challenging with demonetisation move and its effect on the high-end consumer discretionary spend. Despite this headwind MHRIL was able to publish good set of 3QFY17 numbers. MHRIL sales for 3QFY17 surged by 5 per cent q-o-q and 13 per cent y-o-y to ₹274.79 crore as against ₹261.45 crore in 2QFY17 and ₹243.15 crore in 3QFY16.
MHRIL’s PAT rose by 9 per cent q-o-q and 15 per cent y-o-y to ₹35.71 crore in 3QFY17 as against ₹32.86 crore in 2QFY17 and ₹31 crore in 3QFY16.
The primary reason for such good performance is largely due to their carefully calibrated strategy of going beyond the product with innovative customer acquisition strategies, deeper member engagement both at resorts and in the cities where members reside, and strengthening of their brand Club Mahindra’s proposition with a new campaign. Also in the times of uncertainty, people look for trust and safety. The Mahindra brands stands for trust and safety, and we have noticed increased member acquisitions. In fact, our member acquisition stand at 14.4 per cent higher than the same period last year at 4,436.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.