Vijay Kedia portfolio: Despite the second wave of Covid-19 hitting the hospitality industry within the half of 2021, Mahindra Holidays & Resorts India’s share price has risen around 55 percent in 2021. In year-to-date (YTD) terms, the stock has surged from ₹215 to ₹330 per share level — logging around 55 percent rise during this period. Mahindra Holidays & Resorts India shares managed to shot up around 85 percent within the last year despite a huge hit on the hospitality sector thanks to the covid pandemic.
According to market experts, such a Bull Run during this Vijay Kedia stock is thanks 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 rationale for this Vijay Kedia portfolio stock giving such a strong return to its shareholders; Avinash Gorakshkar, Head of Research at Profitmart Securities said, “In the hotel business, one’s income begins when its inventory is sold out. But, within the case of Mahindra Holidays & Resorts India, there’s some difference. they need to design their business model in such how that its income from the membership fee and therefore the annual maintenance charges from the prevailing members helps it remain at break-even. So, their business model helps them keep the debt in check and it got reflected in their quarterly numbers too. In fact, the corporate management has said that its second-quarter numbers are going to be more strong because they decide to increase their current membership numbers from around 2 lakh to three lakh in next one year.” So, they decide to add around 25,000 new members in the Q2FY22 period.
Avinash Gorakshkar said that Mahindra Holidays & Resorts India has zero unsold inventories because its entire inventory is sold bent its members. aside from this, when its members come for a stay, this Mahindra group hospitality company earns from the food and beverage consumed by the member during its stay. Hence, it’s the win-win business model for this Vijay Kedia portfolio company and its share price may still rise further as unlock activities are fast accelerating.
Suggesting investors shop for this Mahindra group stock; Sumeet Bagadia, an executive at Choice Broking said, “One can purchase this Vijay Kedia counter at current market value for the immediate short-term target of ₹360 to ₹375 maintaining stop loss at ₹315.”
Vijay Kedia shareholding 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 a 1.02 percent stake within the company.