Edelweiss Securities has given Buy recommendation for INOX Leisure with a target price of Rs. 547 in its research report issued on Dec 07, 2021
Edelweiss Securities’ report on INOX Leisure
We recently met Mr. Siddharth Jain, Director (and promoter), and Mr. Alok Tandon, CEO, of INOX Leisure. If there is no serious wave 3 of covid, then INOX Leisure is set for a strong recovery aided by pent-up demand and a large pipeline of major movies. Meanwhile, the balance sheet can support expansion. Some of its initiatives such as refreshing food and beverage offerings with a new menu and partnerships with ITC and delivery & reservation apps along with screening of alternative content would help the brand evolve from just a film exhibitor to a more integral part of consumer lifestyle.
Outlook
We remain upbeat on INOX’s structural story; retain ‘BUY’ with a TP of INR547. Covid wave 3 remains a key risk and variable to watch out for.