Mahindra Holidays rise 5% to hit a 10-week high; up 58% in 2022

Shares of Mahindra Holidays & Resorts India opened strongly for the second consecutive trading session on Tuesday. The stock began trading in a bullish manner at 288.60 apiece as against the previous closing price of ₹288.05 and climbed further to reach an intraday high of ₹303.15 in the early trade, reaching a 10-week high. However, it later failed to maintain that bullish trend and is now trading at ₹295.95, up ₹7.95 or 2.76% on the BSE at 01 p.m.(IST).

During Tuesday's intra-day trade, the stock recorded a volume of 1.3 million shares, both on the NSE and BSE, a 3.19-fold surge over its average weekly volume of 423.0k.

In the last five trading days, the stock has risen 7.89 percent. Over the last six months, the stock has returned nearly 35.70 percent, and it is currently trading near its all-time high of ₹313.60.

The stock picked up steam in June of this year, and so far, it has returned 51.08%. YTD, the stock has delivered 58% return while the benchmark Sensex has risen 7.31% during the same time frame.

Since the beginning of the year, hotel stocks are trading higher as the Indian hotel industry has recovered to its pre-Covid levels as a result of factors such as the resurgence of domestic and international tourism, the restart of international flights, the recovery in business travel, and improving leisure and wedding demand.

According to media reports, India witnessed a 244% increase in hotel demand across six major cities—Delhi, Bengaluru, Chennai, Goa, Hyderabad, and Mumbai—in the second quarter of 2022.

For the September-ending quarter, the company reported a 30.73% decline in consolidated profit after tax of ₹41.39 crore, impacted by higher expenses. The company had posted a consolidated profit after tax of ₹59.76 crore in the same period last fiscal. Sequentially the net profit was up by 37.71%.

The revenue from operations during the quarter came in at ₹598.36 crore, as against ₹546.4 crore in the year-ago period. The company's total expenditure during the September 2022 quarter jumped 11.55 percent to ₹574.66 crore, compared with ₹515.13 crore in the corresponding period last year.

"Acceleration in room inventory and growth in member additions is reflected in the strong performance with the highest ever Q2 total income, EBITDA, and PBT (profit before tax)," MHRIL MD and CEO Kavinder Singh said during the earnings call.

On the company's European operations, he said despite the adverse effects of the Russia-Ukraine war, which affected consumer sentiment and had an unprecedented inflationary impact leading to a rise in input costs, Holiday Club Resorts (HCR) has delivered an impressive Q2 performance.

Meanwhile, on a standalone basis, the company said it added 4,397 new members at a growth rate of 12 percent in the second quarter, and membership sales value was at ₹194 crore, up growth 93 percent.

The company further said it had a higher average unit realisation (AUR) of ₹3.9 lakh, as against ₹2.6 lakh in Q2 FY22.

During the second quarter, 116 keys were added to the existing inventory through new resorts at Mount Abu and Kathmandu (Nepal) and the extension of the Gangtok (Sikkim) resort. Total inventory stands at 4,715 rooms across 86 resorts, the company added.

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