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