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Buy Inox Leisure, tgt Rs 101: Karvy
Karvy research has maintained buy rating on Inox with tar get price of Rs 101. We have not changed our earnings estimates of the company for FY09 and will consider reviewing once the 1Q FY09 results are out along with the fresh list of planned property roll outs in FY09.
Karvy research has maintained buy rating on Inox Leisure with tar get price of Rs 101 in its July 17, 2008 report. "We expect Inox to report a QoQ decline of 1.6% and a YoY decline of 13.5% in its topline for 1QFY09. The lack of quality content and IPL playing a spoilsport are the main reasons for the expected poor show. The company launched two new properties in 1QFY09 at Faridabad (1,100 seats) and Nagpur (1,312 seats). We expect the EBIDTA margins to decline by 10 bps on a QoQ basis and stand at 9.3%, on account of lower occupancy levels witnessed in 1Q FY09. However, this is a major fallback from the levels in 1QFY08 of 23.8%. Consequently, the net profits of the company are expected to decline by 11.9% QoQ and 94.8% YoY. We have not changed our earnings estimates of the company for FY09 and will consider reviewing once the 1Q FY09 results are out along with the fresh list of planned property roll outs in FY09. Hence we maintain our price target on the company at Rs 101 rating the stock as a Buy at current levels" according to Karvy report.
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