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Buy Inox Leisure; target of Rs 397: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Inox Leisure has recommended buy rating on the stock with a target price of Rs 397 in its research report dated February 04, 2021.

February 08, 2021 / 03:41 PM IST
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Prabhudas Lilladher's research report on Inox Leisure

Ind-AS adjusted EBITDA loss stood at Rs855mn (excluding OI) versus our estimate of Rs737mn as rigorous cost cutting initiatives resulted in fixed opex burn of ~Rs250-300mn per month during the quarter. While 4QFY21 is more or less expected to be a replica of 3QFY21, removal of occupancy caps and expectation of big budget releases towards end of March indicate normalcy is expected to kick-in with the onset of FY22. Further, current trends on ATP (higher/similar to pre-COVID levels for fresh content) and SPH (down only 9.9% YoY from pre-COVID base) indicate no structural change in consumer behavior/mindset post-COVID. As a result, we keep our EBITDA estimates broadly intact (marginal decline of 2.1%/3.1% in FY22/FY23 respectively).


We maintain BUY with a revised TP of Rs397 (earlier Rs393) valuing the stock at EV/EBITDA multiple of 10x (earlier 9.5x) our FY23E estimates. INOL’s low gearing (net debt free as of Jan-2021) and stringent cost control gives us additional comfort until normalcy resumes.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Broker Research
first published: Feb 8, 2021 03:41 pm

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