Often overlooked Mahindra Holidays stock may prove to be an interesting bet. Here’s why

Often overlooked Mahindra Holidays stock may prove to be an interesting bet. Here’s why

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Mahindra Holidays & Resorts’ focus on keeping its capital cost under control and ensuring that part of those savings are passed on to its customers have helped it keep its head above water even when Covid brought the hospitality industry to its knees.

Synopsis

Club Mahindra operates on a unique business model: customers have to pay a one-time membership fee upfront. Members can stay at any Club Mahindra luxury hotel, resort or vacation home — which are spread across the country and the world — once a year for seven days.

Mahindra Holidays & Resorts has a unique business model and so cannot be compared with traditional hoteliers. So when hospitality stocks get re-rated, its stock tends to get overlooked. But as the company has been able to grow at a decent pace without putting much debt on its books, it looks to be a better bet as the interest rate is moving up.The hotel hospitality sector is one of the most competitive and capital-intensive business models, with

BY

Gaurav Jain and Parimal Ade

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12 mins read, Last Updated:

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