Mahindra Holidays & Resorts India Limited (MHRIL) AI Stock Analysis

• Market Cap: ₹53.48B
• Dividend Yield: N/A
• Average Volume (3M): 4.73K
• Price to Earnings (P/E): 702.7
• Beta (1Y): 0.89
• Revenue Growth: 4.25%
• EPS Growth: 17.51%
• Country: IN
• Employees: 4,339
• Sector: Services
• Sector Strength: N/A
• Industry: Gambling, Resorts & Casinos
• EPS (TTM): 3.10
• Shares Outstanding: 202,043,400
• 10 Day Avg. Volume: 3,427
• 30 Day Avg. Volume: 4,731
• PEG Ratio: 4.58
• Price to Book (P/B): 7.69
• Price to Sales (P/S): 2.22
• P/FCF Ratio: 20.35
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 13.85
• Revenue Forecast (FY): ₹14.89B

• Rating: 57 Neutral
• Price Target: ₹274.00 ▼(-9.82% Downside)
• Action: Reiterated Date: 10/07/25
• Date: Action: Reiterated 10/07/25

The overall stock score of 57 reflects solid financial performance with improved profitability and leverage management. However, technical indicators suggest a bearish trend, and the high P/E ratio indicates potential overvaluation. The absence of a dividend yield further impacts the valuation negatively.

Positive Factors

Recurring, annuity-like revenue

The Club Mahindra membership model generates upfront membership sales plus recurring annual fees that act like annuity revenue. This creates durable, predictable cash inflows and high customer stickiness, supporting long-term cash generation and pricing power across cycles.

Improving leverage metrics

A materially lower debt-to-equity ratio over three years signals sustained deleveraging and better capital structure management. Improved leverage increases financial flexibility, reduces interest burden, and enhances capacity to fund expansions or absorb demand shocks over the medium term.

High gross margins and positive FCF

Sustained high gross margins reflect structural unit economics in resort operations and membership sales, enabling durable profitability. Positive, growing free cash flow underpins reinvestment, debt repayment and resilience, supporting steady operations and strategic initiatives over multiple quarters.

Negative Factors

Low equity ratio / debt reliance

A very low equity ratio means the company is highly leveraged relative to equity, leaving limited buffer against downturns. This structural dependence on debt raises refinancing and interest-rate risks, constraining capital allocation and heightening vulnerability to prolonged demand softness.

Slowing free cash flow growth

Although FCF remains positive, a deceleration in FCF growth reduces the pace at which the company can deleverage, invest in new resorts, or fund member acquisition. Over the medium term, slower FCF expansion may pressure strategic flexibility and capital return capacity.

Weak EPS growth trend

A significant negative EPS growth rate points to earnings volatility or margin pressure despite revenue growth. Persisting EPS declines can limit retained earnings, curb reinvestment and make it harder to fund long-term initiatives or improve shareholder returns without additional capital or margin recovery.

Mahindra Holidays & Resorts India Limited Business Overview & Revenue Model

Company Description

Mahindra Holidays & Resorts India Limited operates in the leisure and hospitality sector. It engages in the sale of vacation ownership and other related services. The company's flagship brand is Club Mahindra or CMH25, which entitles its members to a week's holiday every year for 25 years. It also provides Club Mahindra Fundays, a corporate product that allows enrolled organizations to offer holiday entitlements to its employees either as a part of their reward and recognition programs or as an employment prerequisite; Bliss, a points-based product targeted at the 50-plus age group, which offers a week's holiday every year for 10 years; and GoZest, which is a three-year points-based product aimed at millennial travelers in the less than 30 years age-group. The company operates a network of resorts across various destinations, including hill stations, beaches, backwaters, wildlife sanctuaries, forts, and heritage destinations in India, as well as in international destinations, such as Bangkok, Pattaya, Phuket, Kuala Lumpur, Singapore, Dubai, Colombo, and Bhutan. As of March 31, 2022, it operated 4,568 room units across its 84 resorts. The company was incorporated in 1996 and is based in Mumbai, India. Mahindra Holidays & Resorts India Limited is a subsidiary of Mahindra & Mahindra Limited.

How the Company Makes Money

MHRIL primarily makes money through a vacation ownership (timeshare-style) model under the Club Mahindra brand. The key revenue stream is the sale of vacation ownership memberships, where customers pay an upfront price for the right to use a defined number of holiday nights/entitlements over a long tenure, typically with specified seasonality and resort network access; this upfront consideration is a major driver of cash inflows. A second major stream is annual/recurring subscription or membership fees (often called annual membership fees/maintenance fees) paid by members to cover upkeep and operating costs of the resort network; these recurring fees provide predictable, annuity-like revenue. The company also earns revenue from resort and ancillary services consumed during stays—such as food and beverage, recreation/activities, events, and other on-property services—either directly at company-operated resorts or through arrangements at partner/affiliated properties. Additionally, MHRIL may generate income from fees related to member upgrades, renewals, and other program-related charges associated with managing and servicing the membership base. Factors influencing earnings include the size and growth of the member base, the pace of new membership sales, member retention and collections of annual fees, resort occupancy and capacity additions, and the mix of in-resort spending by members and non-members. Specific partnership details beyond network/affiliated resort access: null.

Mahindra Holidays & Resorts India Limited Financial Statement Overview

Summary

Mahindra Holidays & Resorts India Limited shows solid revenue growth and improved profitability, with ongoing improvements in leverage and shareholder returns. Cash flow generation is strong, but the company relies heavily on debt, which poses a risk. Overall, the financial health is robust, with areas of concern being leverage and cash flow growth sustainability.

Income Statement

The revenue growth over the years is stable, with a notable increase from 2022 to 2025. Gross profit margin is strong at 65.8% for 2025, showing efficient cost management. Net profit margin has improved from 3.5% in 2022 to 4.6% in 2025, indicating better profitability. However, EBIT and EBITDA margins have seen fluctuations, suggesting some variability in operational efficiency.

Balance Sheet

The debt-to-equity ratio has improved from 10.26 in 2022 to 4.01 in 2025, indicating better leverage management. Return on Equity (ROE) improved significantly to 16.3% in 2025, showcasing enhanced shareholder returns. However, the equity ratio remains low at 7.4% in 2025, suggesting a high reliance on debt financing.

Cash Flow

Free cash flow has been positive and growing, with a marginal increase in 2025. However, the free cash flow growth rate has slowed. The operating cash flow to net income ratio is robust, indicating strong cash generation relative to net income. The free cash flow to net income ratio is also strong, but the growth rate requires attention.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	28.76B	27.07B	26.44B	24.60B	19.55B	16.53B
Gross Profit	17.28B	8.42B	17.04B	16.14B	5.38B	3.50B
EBITDA	7.27B	5.79B	6.37B	5.86B	4.86B	3.64B
Net Income	1.34B	1.28B	1.16B	1.15B	675.11M	-130.77M
Balance Sheet
Total Assets	109.84B	106.14B	98.46B	93.17B	88.46B	85.21B
Cash, Cash Equivalents and Short-Term Investments	8.43B	10.00B	9.42B	7.60B	7.15B	4.62B
Total Debt	34.81B	31.31B	27.38B	26.23B	25.67B	24.87B
Total Liabilities	102.45B	98.26B	93.13B	89.19B	85.86B	84.31B
Stockholders Equity	7.32B	7.80B	5.24B	3.90B	2.50B	846.80M
Cash Flow
Free Cash Flow	311.38M	2.95B	2.87B	4.20B	3.66B	2.61B
Operating Cash Flow	2.58B	6.21B	6.24B	6.81B	4.98B	3.82B
Investing Cash Flow	-1.45B	-4.01B	-4.49B	-2.10B	-2.57B	-2.37B
Financing Cash Flow	-1.31B	-2.85B	-1.90B	-4.59B	-2.17B	-1.54B

Mahindra Holidays & Resorts India Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 303.85
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:MHRIL, the sentiment is Negative. The current price of 303.85 is above the 20-day moving average (MA) of 281.06, above the 50-day MA of 292.83, and below the 200-day MA of 329.09, indicating a bearish trend. The MACD of -7.85 indicates Positive momentum. The RSI at 27.80 is Positive, neither overbought nor oversold. The STOCH value of 15.94 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:MHRIL.

Mahindra Holidays & Resorts India Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TAJGVK	72 Outperform	₹18.91B	18.32	―	0.48%	9.49%	40.16%
ORIENTHOT	63 Neutral	₹15.40B	21.96	―	0.48%	19.69%	17.02%
ROHLTD	61 Neutral	₹9.16B	31.71	―	0.61%	10.77%	-4.40%
MHRIL	57 Neutral	₹53.48B	702.73	―	―	4.25%	17.51%
LEMONTREE	56 Neutral	₹80.10B	50.31	―	―	16.03%	44.95%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ITDC	53 Neutral	₹37.69B	44.72	―	0.50%	6.56%	4.21%

Mahindra Holidays & Resorts India Limited Corporate Events

Mahindra Holidays opens special window for transfer and demat of physical shares

Mahindra Holidays & Resorts India Limited has notified stock exchanges that it has published newspaper advertisements announcing the opening of a special window for transfer and dematerialisation of physical securities. The notice, carried in English and Marathi dailies and uploaded to the company’s investor website, is aimed at informing shareholders holding physical share certificates about this limited-period facility and guiding them to regularise and convert their holdings into electronic form.

The move is expected to streamline the company’s shareholder records, reduce risks associated with physical certificates, and align with the broader market shift toward dematerialised securities. By proactively communicating through multiple media and official exchange intimation, Mahindra Holidays is seeking to improve investor convenience, enhance compliance, and potentially expand participation from retail shareholders who have yet to migrate to electronic holdings.

Mahindra Holidays Shares Q3 FY2026 Earnings Call Audio With Investors

Mahindra Holidays & Resorts India Limited has informed stock exchanges that it has concluded its earnings conference call with investors and analysts to discuss the company’s financial performance and business overview for the third quarter ended 31 December 2025. In line with regulatory disclosure requirements, the company has made the audio recording of this Q3 FY2026 earnings call available on its website, enhancing transparency and access to information for shareholders and market participants.

Mahindra Holidays Faces Rs 72.14 Crore Tax Demand, Says No Material Business Impact

Mahindra Holidays & Resorts India Limited has disclosed that it has received an assessment order from the Income Tax Department’s Assessment Unit for Assessment Year 2022-23, raising a tax demand of Rs 72.14 crore linked to Income Computation and Disclosure Standards (ICDS) and transfer pricing adjustments under the Income Tax Act, 1961. The company has stated that the order does not have a material impact on its financial position, operations, or other activities, and it plans to pursue legal remedies before the appropriate authority, signalling that the demand is being contested and is not expected to alter its core business performance in the near term.

Mahindra Holidays Increases Equity Share Capital Through ESOP Allotment

Mahindra Holidays & Resorts India Limited has announced the allotment of 3,000 equity shares under its Employees Stock Options Scheme – 2020, following a resolution passed by its Securities Allotment Committee. This allotment increases the company’s issued and paid-up equity share capital, with the new shares ranking equally with existing shares in terms of dividend and corporate benefits, potentially enhancing employee engagement and aligning interests with company performance.