ICICI Direct has given Hold recommendation for Inox Leisure with a target price of Rs. 275 in its research report issued on Apr 30, 2021

ICICI Direct’s research report on Inox Leisure

Inox Leisure continued to report losses as footfalls and revenues remained well below pre-Covid numbers owing to lack of steady flow of new releases (especially in Hindi language). Revenue was at 90.4%, down 75.7% YoY. EBITDA loss (ex-Ind AS116) came in at ~Rs 89 crore. Inox recognised Rs 26.3 crore as rent concessions and other income of Rs 23.8 crore from settlement of old claims. Subsequently, the company reported net loss (ex-Ind AS116) at Rs 74 crore. On a reported basis, net loss was at Rs 93.7 crore.

Outlook

We value the stock at 10x FY23E (ex-Ind-AS) EV/EBITDA with a target price of Rs 275/share (earlier TP: Rs 350/share).