Buy INOX Leisure; target of Rs 95: Firstcall Research

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26 Aug, 2025 12:21

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Firstcall Research is bullish on INOX Leisure and has recommended buy rating on the stock with a target of Rs 95 in its January 2, 2013 research report.
 
“INOX Leisure Ltd is diversification venture of the INOX Group into entertainment and is a subsidiary of Gujarat Flurochemicals Ltd. Its mission is to be the leader in the cinema exhibition industry in every aspect right from the quality and choice of cinema to the varied services offered and eventually the highest market share. INOX has traversed own path by bringing in a professional and service oriented approach to the cinema exhibition sector. It has established a strong presence in the cinema exhibition industry in the short span of a little over eight years since the opening of its first multiplex. INOX currently operates 68 multiplexes and 257 screens in 34 cities making it a truly pan-Indian multiplex chain.”
 
“Winner of the 'ICICI Entertainment Retailer of the Year' Award 2005, TAAL Multiplexer 2006 and Emerging Superbrand of the year 2006 - 2007 Award, INOX Leisure Ltd will continue expansion into places like Jodhpur, Ahmedabad, Bhopal, Mangalore, Coimbatore, Kanpur, Hubli, Bhuvaneshwar, etc. Its merger with CCPL (89 Cinemas), has given INOX access to an additional 9 multiplexes in West Bengal and Assam. INOX was also chosen post a nationwide tender to design, construct and operate the prestigious multiplex in Goa that hosts the International Film Festival of India. All INOX cinemas have state of the art facilities in terms of modern projection and acoustic systems, interiors of international standards, stadium styled high back seating with cup holder arm-rests, high levels of hygiene, varied theatre food, a selection of Hindi, English and regional movies, computerized ticketing and most importantly high service standards upheld by a young and vibrant team. It has 3D screens in Baroda, Chennai, Faridabad, Indore, Jaipur, Kanpur, Lucknow, Nagpur, Pune, Raipur and Thane besides Mumbai, Bangalore, Pune, Kolkata and Hyderabad which has also contributed to the increase in total revenue.”
 
“INOX Leisure Ltd is the diversification venture of the INOX Group into entertainment & is subsidiary of Gujarat Flurochemicals Ltd in India, reported its financial results for the quarter ended 30th Sep, 2012. The Second quarter witnesses a healthy increase in overall sales as well as profitability of the company. The company net profit jumps to Rs.95.10 million against Rs.91.00 million in the corresponding quarter ending of previous year, an increase of 4.51%. Revenue for the quarter rose 20.20% to Rs.1370.50 million from Rs.1140.20 million, when compared with the prior year period. Reported earnings per share of the company stood at Rs.1.54 a share during the quarter, registering 4.47% increase over previous year period. Profit before interest, depreciation and tax is Rs.259.00 millions as against Rs.227.70 millions in the corresponding period of the previous year.”
 
“At the current market price of Rs 84, the stock P/E ratio is at 36.34 x FY13E and 29.34 x FY14E respectively. Earning per share (EPS) of the company for the earnings for FY13E and FY14E is seen at Rs.2.31 and Rs.2.86 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 18% and 36% over 2011 to 2014E respectively. On the basis of EV/EBITDA, the stock trades at 12.55 x for FY13E and 11.26 x for FY14E. Price to Book Value of the stock is expected to be at 1.51 x and 1.44 x respectively for FY13E and FY14E. We expect that the company surplus scenario is likely to continue for the next years, will keep its growth story in the coming quarters also. We recommend ‘BUY’ in this particular scrip with a target price of Rs 95 for medium to long term investment,” says Firstcall Research report.

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