Vijay Kedia portfolio: Experts give buy call on this hospitality stock
Vijay Kedia portfolio: As per shareholding pattern for April to June 2021, Vijay Kedia holds around 1.02% stake in this Mahindra group company
Vijay Kedia portfolio: Despite second wave of Covid-19 hitting the hospitality industry in the first half of 2021, Mahindra Holidays & Resorts India share price has risen around 55 per cent in 2021. In year-to-date (YTD) terms, the stock has surged from ₹215 to ₹330 per share level — logging around 55 per cent rise in this period. Mahindra Holidays & Resorts India shares managed to shot up around 85 per cent in the last one year despite huge hit on the hospitality sector due to the covid pandemic.
According to market experts, such a bull run in this Vijay Kedia stock is due to the unique business model of this Mahindra group hospitality company that helped it sustain against the pandemic hit. They said that the hospitality stock may further go northward as unlock activities are catching up fast.
Speaking on the reason for this Vijay Kedia portfolio stock giving such a robust return to its shareholders; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "In hotel business, one's income begins when its inventory is sold out. But, in the case of Mahindra Holidays & Resorts India, there is some difference. They have designed their business model in such a way that its income from the membership fee and the annual maintenance charges from the existing members helps it remain at break-even. So, their business model helps them keep the debt under control and it got reflected in their quarterly numbers too. In fact, the company management has said that its second quarter numbers will be more strong because they plan to increase their current membership numbers from around 2 lakh to 3 lakh in next one year." So, they plan to add around 25,000 new members in Q2FY22 period.
Avinash Gorakshkar said that Mahindra Holidays & Resorts India has zero unsold inventories because its entire inventory is sold out to its members. Apart from this, when its members come for stay, this Mahindra group hospitality company earns from the food and beverage consumed by the member during its stay. Hence, it's win-win business model for this Vijay Kedia portfolio company and its share price may continue to rise further as unlock activities are fast accelerating.
Suggesting investors to buy this Mahindra group stock; Sumeet Bagadia, Executive Director at Choice Broking said, "One can buy this Vijay Kedia counter at current market price for the immediate short-term target of ₹360 to ₹375 maintaining stop loss at ₹315."
Vijay Kedia share holding in Mahindra Holidays & Resorts India
As per Mahindra Holidays & Resorts India shareholding pattern for April to June 2021, Vijay Kedia holds 13.60 lakh shares, which is around 1.02 per cent stake in the company.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!