Fundamental Analysis

INOX LEISURE LTD. 

Ticker : 532706
BUY: Rs.372.30
Target: Rs.420



Inox Leisure is one of the largest multiplex and cinema theatre chain in India. The company reported its presence in 19 cities with 583 screens, as on March 31, 2019. In H1FY20, the company added 27 screens and is likely to open 44 new screens in H2FY20. In FY21E, it plans to add 70 new screens. Along with the rise in advertisement and F&B revenues, this addition would make the company's top line surge, significantly. Also, with strong line up of movies releasing in H2FY20, it anticipates heavy footfall across all screens. On the financial front, the company’s consolidated revenue in Q2FY20 was Rs. 519.94 crores, recording a 2.3 per cent YoY increase. The EBITDA grew by 274.5 per cent YoY to Rs. 274.5 crores. The net profit jumped 193.5 per cent YoY to Rs. 35.13 crores. Considering aggressive expansion plans and a robust financial performance, we recommend a BUY on this scrip.