Moneycontrol
Get App
Last Updated : Dec 09, 2019 02:38 PM IST | Source: Moneycontrol.com

Buy Inox Leisure; target of Rs 416: Prabhudas Lilladher

Prabhudas Lilladher is bullish on Inox Leisure has recommended buy rating on the stock with a target price of Rs 416 in its research report dated December 07, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on Inox Leisure


In a freewheeling chat with the analyst community at INOX Megaplex (recently renovated property in Mumbai), Siddharth Jain, Director, emphasized on how the strategy of penetrating in metro/tier-1 markets with constrained aggression has helped in improving ATP/SPH/Ad revenue per screen. In order to penetrate deeper into the North, lot of screens have been signed in Gurgaon & Noida. However, Delhi continues to remain a challenge given scarcity of new malls. In all, the target of adding 70 screens for FY20E remains intact. A new loyalty program was also unveiled with a clear focus on premiumisation (premium screens constitute ~9% of screen mix). The emphasis is on improving margins by increasing the share of non-ticketing revenue (41% of sales mix in 2QFY20) while keeping the pricing (ATP) affordable. We believe INOL's premiumisation approach and strategy to focus on metro/tier-1 markets is yielding rich dividends. Negligible debt and strong screen pipeline visibility (~900 new screens are in fray backed by signed agreements) gives additional comfort.


Outlook


We thus maintain our BUY rating with a TP of Rs416, valuing the stock at an EV/EBITDA multiple of 8.7x on FY21 Ind-AS compliant earnings.


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.



Get access to India's fastest growing financial subscriptions service Moneycontrol Pro for as little as Rs 599 for first year. Use the code "GETPRO". Moneycontrol Pro offers you all the information you need for wealth creation including actionable investment ideas, independent research and insights & analysis For more information, check out the Moneycontrol website or mobile app.
First Published on Dec 9, 2019 02:38 pm
Sections
Follow us on
Available On