Mahindra Holidays & Resorts India Ltd (MHRIL) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Ventive Hospital

Samhi Hotels

TajGVK Hotels

Brigade Hotel

Chalet Hotels

Lemon Tree Hotel

I T D C

Apeejay Surrend.

Leela Palaces Ho

Juniper Hotels

Mahindra Holiday

Why is Mahindra Holidays & Resorts India Ltd ?

High Debt Company with a Debt to Equity ratio (avg) of 4.52 times

Poor long term growth as Net Sales has grown by an annual rate of 11.58% over the last 5 years
High Debt Company with a Debt to Equity ratio (avg) of 4.52 times
The company has been able to generate a Return on Capital Employed (avg) of 6.14% signifying low profitability per unit of total capital (equity and debt)

The company has declared Negative results for the last 4 consecutive quarters

PAT(Latest six months) At Rs 45.14 cr has Grown at -58.17%
INTEREST(9M) At Rs 142.32 cr has Grown at 24.77%
ROCE(HY) Lowest at 7.18%

Below par performance in long term as well as near term

Along with generating -21.50% returns in the last 1 year, the stock has also underperformed BSE500 in the last 3 years, 1 year and 3 months

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Hotels & Resorts)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Mahindra Holiday for you?

Medium Risk, Low Return

Absolute

Risk Adjusted

Volatility

Mahindra Holiday

-21.5%

-0.80

26.78%

Sensex

-3.74%

-0.28

13.48%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

11.58%

EBIT Growth (5y)

52.88%

EBIT to Interest (avg)

1.18

Debt to EBITDA (avg)

5.34

Net Debt to Equity (avg)

3.93

Sales to Capital Employed (avg)

0.96

Tax Ratio

51.67%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

16.32%

ROCE (avg)

6.99%

ROE (avg)

21.20%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

6.24

EV to EBIT

38.18

EV to EBITDA

12.84

EV to Capital Employed

2.06

EV to Sales

2.65

PEG Ratio

Dividend Yield

ROCE (Latest)

5.40%

ROE (Latest)

9.11%

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Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bollinger Bands

Bearish

Moving Averages

Bearish (Daily)

KST

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

7What is working for the Company

PBT LESS OI(Q)

At Rs 41.62 cr has Grown at 187.7% (vs previous 4Q average

PAT(Q)

At Rs 41.56 cr has Grown at 62.4% (vs previous 4Q average

NET SALES(Q)

Highest at Rs 820.29 cr

-15What is not working for the Company

PAT(Latest six months)

At Rs 45.14 cr has Grown at -58.17%

INTEREST(9M)

At Rs 142.32 cr has Grown at 24.77%

ROCE(HY)

Lowest at 7.18%

INVENTORY TURNOVER RATIO(HY)

Lowest at 3.59 times

CASH AND CASH EQUIVALENTS(HY)

Lowest at Rs 101.86 cr

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.43 times

NON-OPERATING INCOME(Q)

is 36.28 % of Profit Before Tax (PBT

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Here's what is working for Mahindra Holiday

Profit Before Tax less Other Income (PBT) - Quarterly

At Rs 41.62 cr has Grown at 187.7% (vs previous 4Q average)

over average PBT of the previous four quarters of Rs 14.47 Cr

MOJO Watch

Near term PBT trend is very positive

PBT less Other Income (Rs Cr)

Profit After Tax (PAT) - Quarterly

At Rs 41.56 cr has Grown at 62.4% (vs previous 4Q average)

over average PAT of the previous four quarters of Rs 25.60 Cr

MOJO Watch

Near term PAT trend is very positive

PAT (Rs Cr)

Net Sales - Quarterly

Highest at Rs 820.29 cr

in the last five quarters

MOJO Watch

Near term sales trend is positive

Net Sales (Rs Cr)

Here's what is not working for Mahindra Holiday

Inventory Turnover Ratio- Half Yearly

Lowest at 3.59 times and Fallen

each half year in the last five half yearly periods

MOJO Watch

Company's pace of selling inventory has slowed

Inventory Turnover Ratio

Interest - Nine Monthly

At Rs 142.32 cr has Grown at 24.77%

over preceding nine months period

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (Rs cr)

Non Operating Income - Quarterly

is 36.28 % of Profit Before Tax (PBT)

MOJO Watch

The company's income from non business activities is high; which is not a sustainable business model

Non Operating Income to PBT

Cash and Cash Equivalents - Half Yearly

Lowest at Rs 101.86 cr

in the last six half yearly periods

MOJO Watch

Short Term liquidity is deteriorating

Cash and Cash Equivalents

Debtors Turnover Ratio- Half Yearly

Lowest at 2.43 times

in the last five half yearly periods

MOJO Watch

Company's pace of settling its Debtors has slowed

Debtors Turnover Ratio