Buy Inox Leisure; target of Rs 280: Dolat Capital
Dolat Capital recommended accumulate rating on Inox Leisure with a target price of Rs 280 in its research report dated October 22, 2018.
October 23, 2018 / 03:57 PM IST
Dolat Capital's research report on Inox Leisure
Inox reported healthy revenue growth YoY supported by better spend per head along with growth in BO and ad. revenue. EBITDA margin declined 180bps YoY at 12.3% due to higher direct cost and other expenses (higher F&B input cost and legal expenses due to the F&B case being contested); box office collection is expected to be strong led by release of big movies like Robot 2.0 and Thugs of Hindostan in Q3FY9. Inox is currently trading at valuations of 7.6x/6.7x based on our FY20/FY21 EV/EBITDA estimates.
Maintain our BUY rating with a Sep’19 target price of ` 280 at 9.0x EV/EBITDA.
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