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| Man enjoying timeshare holiday on the beach |
There could be two totally different kinds of Investments in time share companies as follows:
- Investment in time-shares - that is investing for ownership of a property for a certain period of the year so that the investor can enjoy a holiday - I do not think this is an investment for a return and is not suitable for discussion here.
- Investment in the shares of companies, which are engaged in the business of operating time-share holidays. I presume you are referring to this investment and proceed to answer the question.
In India two companies are popular names that are listed companies:
- Sterling Holiday Resorts (India) Ltd. - Pioneer in India but had fallen into financial woes and its shares do not appear to be traded now though the company is still in operations.
- Mahindra Holidays and Resorts India Ltd. - a part of the strong Mahindra Group of companies.
Mahindra Holidays did not turn-up in my stock filtration and I have not evaluated this company. After you raised this question I have glimpsed through the financials and ratios of Mahindra Holidays and they look good.
I also peeped at the market conditions and the share is quite expensive. Please see the picture below:
There could be two totally different kinds of Investments in time share companies as follows:
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| Mahindra Holidays Share Market Snapshot |
PE multiple of 28.7 and price to book value of 5.35 make the scrip expensive. You may consider buying the share when the market is skeptical generally or specifically towards this stock.
Please also wait for a detailed investment research report on Mahindra Holidays soon, which you can find on this site along with others already published at:
- For studying on the web: Resesrch Reports
- For downloading: Free Downloads
Thank you,
With Best Regards
Anand
