Edelweiss Securities maintained 'Buy' on Mahindra Holidays & Resorts (MHRL) with revised target price of Rs 330 from Rs 329 earlier in its report.

Commenting on the investment rationale, the stock broker said, "MHRL's Q4FY15 net revenue at Rs 2.04 billion was 21% below estimate (down 7% YoY) due to decline in income from sale of vacation ownership (VO) on account of one-off receivable adjustments. This was despite 70% YoY jump in member addition. Adjusted for additional exceptional adjustment of Rs 144 million, PAT rose 2% YoY on tax write back.

MHRL added 4,912 net members during Q4FY15, up 70% YoY-the highest quarterly addition in the past 2 years. Management stated that this included a higher proportion of higher category members. While membership addition had been flat, the trend has improved and overall for FY15 net members catapulted 28% YoY. Simultaneously, the jump in sales & marketing  expenses is also coming off.

With cessation of the consolidation phase, we believe, member addition will spurt riding reduced cancellations. We, therefore, maintain 'Buy' recommendation with a revised target price of Rs 330 (Rs 329 earlier). We value MHRL using average of DCF, P/E and EV/EBITDA, further reduced by Rs 38 a share to incorporate unearned revenue. The stock is trading at a P/E of 12.5x FY17E."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.