Moneycontrol PRO
Check Credit Score
Check Credit Score
HomeNewsBusinessStocks

Buy Inox Leisure; target of Rs 620: Sharekhan

Sharekhan is bullish on Inox Leisure has recommended buy rating on the stock with a target price of Rs 620 in its research report dated October 19, 2022.

October 20, 2022 / 10:16 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Sharekhan's research report on Inox Leisure

The company reported revenues of Rs. 374.1 crore for Q2FY23 but EBITDA at Rs. 85.1 Cr fell sharply by 49.3% when compared to pre-pandemic Q2FY20 led by fall in footfalls and occupancy on account of weak performance of Big Budget Bollywood movies. For Q2FY23, occupancy at 17% and admits at 116 Lakh fell by 1300 bps and ~3900 bps, respectively with respect to pre-pandemic Q2FY20 and 1200 Bps and ~ 3700 Bps respectively when compared to Q1FY23. Company added 30 screens in H1FY23, the highest screen addition in Industry. Inox Leisure has guided for additions of 47 screens over the remainder of FY2023. The capex would be funded through internal accruals. The company proposes to acquire Chennai City’s largest multiplex ‘Luxe Cinema’, subject to necessary approvals. Luxe Cinema is an EBITDA-positive property with great location and higher footfalls. The company also added 3 screen multiplexes at Srinagar, the first ever in Kashmir.

Outlook

We maintain a Buy on Inox Leisure with a revised PT of Rs. 620, given relatively stronger content pipeline in H2FY23 compared to H1FY23, healthy screen additions, potential improvement of operating metrics, savings due to cost reduction measures and significant synergies across revenues from upcoming merger with PVR.

For all recommendations report, 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.

Inox Leisure - 201022 - khan

Broker Research
first published: Oct 20, 2022 10:16 pm

Discover the latest business news, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347