Mahindra holidays is a "Timeshare" holiday company that operates under the "Club Mahindra" Brand, the company has 50 Resorts with 4 star facilities. Basically, the company sells holiday packages for a duration of 25 years under which you are entitled to stay at any of these resorts for 7 days per year, for the next 25 years. The membership fee (currently in the range of 3-18 lacs, depending on the plan you choose) is paid upfront by the customer. Apart from the membership fee, an yearly maintenance fee is also charged from the customers (currently in the range of 7-15K per year)
Here is a detail of the variants of membership -
I accept that valuing this company on the basis of P/E and EPS growth is not the best way and thereby its only used to get a vague sense of valuation and not "the valuation". This is strictly meant for educational purposes.
Total Score - 31/40
An educational report by Pranjal Kamra.
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