Hold Inox Leisure: target of Rs 275: ICICI Direct
ICICI Direct recommended hold rating on Inox Leisure with a target price of Rs 275 in its research report dated April 30, 2021.
May 25, 2021 / 03:10 PM IST
ICICI Direct's research report on Inox Leisure
Inox Leisure continued to report losses as footfalls and revenues remained well below pre-Covid numbers owing to lack of steady flow of new releases (especially in Hindi language). Revenue was at 90.4%, down 75.7% YoY. EBITDA loss (ex-Ind AS116) came in at ~Rs 89 crore. Inox recognised Rs 26.3 crore as rent concessions and other income of Rs 23.8 crore from settlement of old claims. Subsequently, the company reported net loss (ex-Ind AS116) at Rs 74 crore. On a reported basis, net loss was at Rs 93.7 crore.
We value the stock at 10x FY23E (ex-Ind-AS) EV/EBITDA with a target price of Rs 275/share (earlier TP: Rs 350/share).
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