Reviews

INOX LEISURE

Ticker: 532706 FV: Rs.10
52-Week H/L: Rs.326/190.35

We had recommended Inox Leisure in Volume No 34, Issue No 30 (dated May 14, 2018), when the scrip was trading at Rs 276. In Q1FY19, the revenue was up by 7.1 per cent YoY. The revenue from F&B and advertisement grew by 26.3 per cent YoY and 20 per cent YoY, respectively. EBITDA margin stood at 20.1 per cent and PAT rose by 15.3 per cent YoY. The stock has majorly corrected due to Maharashtra government's announcement allowing cinegoers to carry outside eatables and disallowing sale of food items exceeding MRP in cinema halls. This might adversely impact company's F&B segment which is high margin business and Maharashtra contributes over 25 per cent of total revenue. Thus, we urge investors to REDUCE EXPOSURE to the stock for the short term.

 

JUST DIAL

Ticker: 535648 FV: Rs.10
52-Week H/L: Rs.648/326.10

We had recommended Just Dial in Volume No 34 Issue No 36 (dated June 25, 2018) when the scrip was trading at Rs 565. Our recommendation was backed by factors like attractive valuation and high promotional spending. In Q1FY18, its revenue grew by 11.3 per cent YoY. The EBITDA margin for the quarter expanded to 27.2 per cent . However, PAT was marginally up by 1 per cent YoY. For FY18, the company had spent Rs 60-65 crore on advertising and plans to spend to Rs 100 crore in FY19. It has a wide network in tier-I cities and response from tier-II and tier-III cities is increasing gradually. The campaigns have helped the company to derive higher revenue and strong growth. Thus, looking at the positive prospects, we urge investors to HOLD the scrip.