Sharekhan has given Buy recommendation for Inox Leisure with a target price of Rs. 620 in its research report issued on Oct 19, 2022
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.