ICICI Direct is bullish on Inox Leisure has recommended buy rating on the stock with a target price of Rs 350 in its research report dated August 05, 2019.
ICICI Direct's research report on Inox Leisure
Inox Leisure’s Q1FY20 performance was in line with estimates. Net box office revenues grew 19% YoY to Rs 287 crore, aided by strong footfall growth of 11% YoY. ATP was down marginally 0.4% YoY to Rs 198. F&B revenue grew 19% YoY to Rs 132 crore, aided by SPH growth of 6% YoY to Rs 81. Advertisement revenue grew 18% YoY to Rs 47 crore. EBITDA (without Ind-AS 116) came in at Rs 89 crore, largely in line with estimates, with margins at 18.1%. On a reported basis, EBITDA came in at Rs 150 crore with EBITDA margins at 30% PAT (without impact of Ind-AS 116) came in at Rs 41 crore, growth of 11% YoY. Given the straight lining of rental as depreciation and interest in initial year, reported PAT was at Rs 27 crore.
Outlook
We maintain our BUY recommendation and value it at 7.5x FY21E EV/EBITDA (~25% discount to PVR target multiple of 10x EV/EBITDA) to arrive at target price of Rs 350/share.
For all recommendations report, click here
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