Buy Inox Leisure; target of Rs 416: Prabhudas Lilladher

December 09
16:25 2019

Prabhudas Lilladher’s research report on Inox Leisure

In a freewheeling chat with the analyst community at INOX Megaplex (recently renovated property in Mumbai), Siddharth Jain, Director, emphasized on how the strategy of penetrating in metro/tier-1 markets with constrained aggression has helped in improving ATP/SPH/Ad revenue per screen. In order to penetrate deeper into the North, lot of screens have been signed in Gurgaon & Noida. However, Delhi continues to remain a challenge given scarcity of new malls. In all, the target of adding 70 screens for FY20E remains intact. A new loyalty program was also unveiled with a clear focus on premiumisation (premium screens constitute ~9% of screen mix). The emphasis is on improving margins by increasing the share of non-ticketing revenue (41% of sales mix in 2QFY20) while keeping the pricing (ATP) affordable. We believe INOL’s premiumisation approach and strategy to focus on metro/tier-1 markets is yielding rich dividends. Negligible debt and strong screen pipeline visibility (~900 new screens are in fray backed by signed agreements) gives additional comfort.


We thus maintain our BUY rating with a TP of Rs416, valuing the stock at an EV/EBITDA multiple of 8.7x on FY21 Ind-AS compliant earnings.

For all recommendations report, click here

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on are their own, and not that of the website or its management. advises users to check with certified experts before taking any investment decisions.

Are you happy with your current monthly income? Do you know you can double it without working extra hours or asking for a raise? Rahul Shah, one of the India’s leading expert on wealth building, has created a strategy which makes it possible… in just a short few years. You can know his secrets in his FREE video series airing between 12th to 17th December. You can reserve your free seat here.

Related Articles