SPA Securities is bullish on Adlabs Entertainment has recommended buy rating on the stock with a target price of Rs 119 in its research report dated February 23, 2018.
SPA Securities' research report on Adlabs Entertainment
Adlabs Entertainment Ltd. (AEL) reported mixed set of numbers with higher than expected footfalls in Theme Park and Water Park which was partly offset by fall in ARPU. EBITDA margin in the quarter improved on the back of various cost cutting measures. The company's plan to monetize excess land and selling of Novotel business is on track, we expect the deal to go through in 1Q FY18. We remain bullish in longer term prospect of overall theme park industryandrecommend buy with a target of INR 119.
OutlookWe expect steady and growing footfalls in future. We expect AELs revenue and EBITDA to grow at a CAGR of 106% and 122% respectively from FY17 to FY20. We recommend buywith DCF target price to INR 119.
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