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Buy Talwalkars; target of Rs 319: CD Equisearch

CD Equisearch is bullish on Talwalkars Better value Fitness and has recommended buy rating on the stock with a target price of Rs 319 in its research report dated October 16, 2015.

October 16, 2015 / 20:46 IST
     
     
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    CD Equisearch research report on TalwalkarsTalwalkars is a leader in the Indian fitness industry with centres across India offering gymming and fitness. The Company’s fitness centres operate under two major formats - Talwalkars and HiFi (budget format located in non-metros). It has continuouslyfocused on generating greater same-store sales growth over the need to implement new fitness centres.Talwalkars’ asset-light strategy is focused on the generation of superior business returns that can be deloyed in synergic business extensions, leading to sustainable growth. The Company implemented the rollout of franchisee owned centres (HiFi), making it possible to widen the Talwalkars footprint with significantly lower investments, and generate franchise licensing fees. Talwalkars follows a balanced business model that combines volume and margin growth across its various service offerings that range from basic gym membership, personal training, weight loss programmes, spa facilities, aerobics and health counseling among others.Talwalkars is increasingly focusing on the premiumisation of services at its fitness centres. Offerings such as NuForm,Reduce and Transform are helping create a strong differentiator between Talwalkars and other competing helath centres. These offerings are reporting traction, accounting for a larger share of revenues. The Company opened its top of-the-line fitness centre at Hyderabad spread across 10,000 sq. ft. (against a standard size of 5,000 sq. ft.). The annualmembership fees at these fitness centres are 30-40% higher than the fees charged at regular fitness centres.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

    first published: Oct 16, 2015 08:46 pm

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