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Sell Inox Leisure; target of Rs 240: Motilal Oswal

Motilal Oswal is bearish on Inox Leisure has recommended sell rating on the stock with a target price of Rs 240 in its research report dated May 02, 2017.

June 08, 2017 / 07:03 PM IST
 
 
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Motilal Oswal's research report on Inox Leisure


Inox added 22 new screens in 4QFY17, with ticket sales increasing 18% YoY and F&B/advertisement revenue growing 15%/8% YoY. Footfall increased 13% YoY to 13m (8% on comparable basis), driven by strong content – top 5 films contributed 51% of gross box office collection v/s 42% in 4QFY16. ATP grew 4% YoY to INR 174, while SPH increased 2% YoY to INR 59. Occupancy increased to 27% from 23% in 4QFY16.


Outlook


Management guided for addition of 11 new properties with 49 screens in FY18, coupled with strong growth (in high teens) in ad revenue. We maintain our earnings estimates and expect revenue/PAT CAGR of 23%/88% over FY17-19. Maintain Sell with a TP of INR 240 (20x FY19E EPS), implying 18% downside.


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first published: May 3, 2017 04:38 pm

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