Look at Inox Leisure, could get re-rated: Prakash Diwan

Prakash Diwan of prakashdiwan.in told CNBC-TV18, "I decided to take the path less traveled, go into areas which are not sensitive to interest rates. If you see the quarterly numbers, last quarter itself Inox Leisure had seen such a huge change favourably. What is happening is that the trend of movies which clock Rs 100-200 crore is becoming so common. You have such a slew of blockbuster which are in the making. I keep on hearing the kind of numbers that are coming even from regional films. The other thing is that the trend has changed between last year or yester years and now the tier II towns, the Hollywood movies have started doing well which was never the case. It was only the metros that absorbed those kind of things. However, you see a lot of following there." "Essentially Inox Leisure has quietly done this inorganic expansion and there is consolidation that is going on in the industry. So, PVR is right there at the top, Inox has kind of inched its way up to the second slot now with 23-24 percent market share. So, it is a decent presence and the operating leverage is simply beautiful. You have 25 percent growth on the foods and beverages. So, popcorn and Pepsi continues to sell irrespective whether the movie does well or not. So, those are things which are going to create a lot of moots around their business," he said. "People do have that discretionary spending thing which is not coming down. They have got a very strong balance sheet, the promoters are really strong on the balance sheet side and I think this company could kind of get re-rated. It has not come down, I was waiting for it to actually lose off some ground in this meltdown but it hasn't. So hopefully it will go up if it is not coming down," he added.