Why is Mahindra Holiday falling/rising?

Oct 15 2025 09:48 PM IST
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As of 15-Oct, Mahindra Holidays & Resorts India Ltd is priced at 336.80, up 0.61%, but has underperformed its sector and shows a significant decline of 6.78% over the past month. The company faces concerns due to high debt and low return on capital, leading to cautious investor sentiment despite recent profit growth.
As of 15-Oct, Mahindra Holidays & Resorts India Ltd is currently priced at 336.80, reflecting an increase of 2.05 or 0.61%. Despite this uptick, the stock has underperformed its sector by 0.37% today and is trading below its 5-day, 20-day, 50-day, 100-day, and 200-day moving averages. Over the past week, the stock has declined by 1.19%, and it has shown a significant drop of 6.78% over the past month. The company has experienced a decrease in investor participation, with delivery volume falling by 18.71% compared to the 5-day average. While the stock has seen a recent gain after two consecutive days of decline, it has generated a negative return of 13.53% over the past year, despite a 6.9% increase in profits, indicating a disconnect between stock performance and profitability.

In the broader market context, the Sensex has increased by 1.02% over the past week, contrasting with Mahindra Holidays' short-term decline. The company has a high debt-to-equity ratio of 5.40, which raises concerns about its financial stability and profitability, as indicated by a low return on capital employed of 5.02%. Although the company has shown healthy long-term growth in operating profit, the overall performance in both the long and near term has been below par, contributing to the stock's struggles against the benchmark indices. The stock is trading at a discount compared to its peers, but the combination of high debt and underwhelming sales growth suggests that investors remain cautious.
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