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Buy Inox Leisure; target of Rs 340: Anand Rathi

Anand Rathi is bullish on Inox Leisure has recommended buy rating on the stock with a target price of Rs 340 in its research report dated April 19, 2021.

April 21, 2021 / 01:31 PM IST
 
 
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Anand Rathi's research report on Inox Leisure


After trailing PVR for several years, we find Inox best suited to make the most of the situation as it has a strong balance sheet with Rs1.3bn net cash(vs. PVR’sRs11.3bn net debt), less cash burn/month till normalcy returns (Rs0.4bn vs. PVR’s Rs0.6bn) and has grown faster over FY17-FY20 on several key operating parameters: ATP (4%, vs. PVR’s 1% CAGR), spend/ head (9% vs. 7%) and ad revenue/screen (12% vs. 4%). All these factors enable Inox to expand faster in the next phase of the growth cycle and reduce the gap in the footprint with PVR (~643 screens, vs. PVR’s ~844).



Outlook


We introduce our FY23e and maintain our Buy rating with a new target price of Rs340 (earlier Rs292, valuing it at 10x FY23e EBITDA).


For all recommendations report, click here


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.

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first published: Apr 21, 2021 01:31 pm

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