Mahindra Holidays - Best Bet on Ever-growing India's Tourism - Emkay

- A strong franchise in leisure travel space, with a USP of a family-oriented experience at prominent locations for the growing holiday-craving Indian middle-class population

- MHR's cash outflows (mainly capex) are as discretionary as its cash inflows (largely VOS sales), ensuring prudent capital management and lower business risks

- Transitioning from a 'Push' to a 'Pull' strategy, due to a TRAI directive and adding newer destinations are key challenges. We est. new members at 13K/15K in FY14/15E vs 17K in FY13

- Initiate coverage with a Accumulate rating and TP of Rs 250. Valuing MHR on OCF-yield basis, with yield of 10.3% (150bps over 10-year G-sec) to FY15E OCF of Rs 2.25bn

Source : Equity Bulls

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