Sharekhan's research report on Inox Leisure
Q4FYF22 revenue growth was strong led by a sharp recovery in footfalls, while EBITDA beat estimates; Average ticket prices and spend per head (SPH) grew by 27% and 10% on y-o-y. Though monthly absolute fixed costs would rise to pre-pandemic level going ahead, we believe the fixed costs per screen to remain lower as the company has added 49 screens in last two years. Given a strong movie pipeline, robust footfalls for good content, potential recovery in advertising revenue, and market expansion for dubbed movies, we believe Inox Leisure is well placed to report strong growth in FY2023E.
Outlook
We maintain a Buy on Inox Leisure with an unchanged PT of Rs. 675, given significant synergies across revenues (from merger with PVR), a healthy recovery in operating metrics and scope for potential margin improvement.
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