Hold INOX Leisure; target Rs 82: Firstcall Research
Firstcall Research has recommended hold rating on INOX Leisure with a target price of Rs 82 in its March 11, 2013 research report.
March 13, 2013 / 11:33 IST
Firstcall Research has recommended hold rating on INOX Leisure with a target price of Rs 82 in its March 11, 2013 research report.
"INOX Leisure is the diversification venture of INOX Group into entertainment and is a subsidiary of Gujarat Flurochemicals Ltd. During the quarter, the robust growth of Net Sales is increased by 22.87% to Rs. 1374.20 million. INOX started new commercial operation of the new multiplex cinema theatre situated at 5th Floor, Lake City Mall, Udaipur, having 4 screens and 901 seats. INOX is now present in 29 cities with 45 multiplexes, 178 screens and 48,897 seats. Inox opened first multiplex with 3 screens in Bhubaneswar Inox Leisure made its entry into Bhubaneswar – Odisha. INOX started new commercial operation of the new multiplex cinema theatre situated at Amanora park town, Pune with having 8 screens and 1865 seats. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 54% over 2011 to 2014E respectively.The company net profit declines to Rs.77.00 million against Rs.82.00 million in the corresponding quarter ending of previous year, a decrease of 6.10%. Revenue for the quarter rose 22.87% to Rs.1374.20 million from Rs.1118.40 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.25 a share during the quarter, registering 6.11% decrease over previous year period. Profit before interest, depreciation and tax is Rs.245.40 millions as against Rs.182.50 millions in the corresponding period of the previous year.Outlook and Conclusion: At the current market price of Rs.73.00, the stock P/E ratio is at 18.99 x FY13E and 17.44 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.3.82 and Rs.4.16 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 20% and 54% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 7.71 x for FY13E and 7.50 x for FY14E. Price to Book Value of the stock is expected to be at 1.27 x and 1.18 x respectively for FY13E and FY14E. We recommend 'HOLD' in this particular scrip with a target price of Rs 82 for Medium to Long term investment," says Firstcall Research report.Institutional holding more than 40% in Indian cos 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.To read the full report click on the attachment 
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