Buy Inox Leisure, target price Rs 630: ICICI Securities

ICICI Securities has buy call on Inox Leisure with a target price of Rs 630. The current market price of Inox Leisure Ltd. is Rs 505.55. Time period given by analyst is one year when Inox Leisure Ltd. price can reach defined target.

Inox Leisure Ltd., incorporated in the year 1999, is a Mid Cap company (having a market cap of Rs 6209.32 Crore) operating in Media & Entertainment sector.

Inox Leisure Ltd. key Products/Revenue Segments include Other Services, Beverages & Food and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 30-09-2022, the company reported a Consolidated Total Income of Rs 380.79 Crore, down -35.40 % from last quarter Total Income of Rs 589.42 Crore and up 611.89 % from last year same quarter Total Income of Rs 53.49 Crore. Company reported net profit after tax of Rs -40.37 Crore in latest quarter.

Investment Rationale
Accordingly, the brokerage has cut target price to Rs630 (from Rs650), valuing the company at an unchanged multiple of 16x FY24E EBITDA. Upgrade to BUY (from Add) as the stock has corrected only because of a few failed Hindi contents, which is cyclical.

Promoter/FII Holdings
Promoters held 44.04 per cent stake in the company as of 30-Jun-2022, while FIIs owned 16.94 per cent, DIIs 26.31 per cent.