Sharekhan has given Buy recommendation for Inox Leisure with a target price of Rs. 400 in its research report issued on Feb 04, 2021

Sharekhan’s research report on Inox Leisure

Q3 was weak owing to dismal occupancies, absence of new film releases and as operations resumed with 50% seating capacity in phases. Company kept purse-strings tight by optimising costs. Management expects occupancy levels to revert to normal by H2FY2022 as big-starrer movies are lined up for release. Expect big releases from April 2021 onwards. We expect viewers to return to the silver screen, hence we do not see any material change in consumer behaviour after normalcy; hence we model strong recovery in FY2022E.

Outlook

We maintain a Buy on Inox Leisure Limited (Inox) with a revised price target (PT) of Rs. 400 as approvals to resume operations with 100% capacity and expected new releases offer better visibility.

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