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HomeNewsBusinessStocksBuy Talwalkars Better Value Fitness; target of Rs 378: Way2wealth

Buy Talwalkars Better Value Fitness; target of Rs 378: Way2wealth

Way2wealth is bullish on Talwalkars Better Value Fitness has recommended buy rating on the stock with a target price of Rs 378 in its research report dated June 19, 2017.

June 21, 2017 / 09:44 IST
     
     
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    Way2wealth's research report on Talwalkars Better Value Fitness

    The Company management is currently executing restructuring process wherein current organization is likely to be divided into two entities i.e. Gym (Pure Gym business) and Lifestyle (Fitness club + Property + Zorba + Reduce + Nuform etc.). Post restructuring, both entities are likely to be listed.

    Outlook

    At CMP of Rs 305, Talwalkars is currently trading at a PE of 9.7x FY19E and EV/EBITDA of 5.0x FY19E. Given the Company's a) strong growth prospects given its leadership position in highly under penetrated and growing market b) 19% PAT CAGR over FY17-19E and c) average ROE of 15% through FY17-19E, we value the company at 12xFY19E EPS with a target price of Rs 378. We reiterate a BUY rating on the stock.

    For all recommendations, 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.

    first published: Jun 20, 2017 04:03 pm

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