Inox Leisure Ltd. share price target

Q1FY19 revenues came in at | 414.9 crore (up 7.1% YoY), slightly ahead of our estimates of | 410.7 crore, owing to better-than-expected ATP and spend per head (SPH). ATP grew 3.1% YoY to | 199, better than our estimate of 2% YoY growth while SPH grew 13.4% YoY (vs. our expectation of 10.5% YoY). Footfalls declined 1.1% YoY to 15.6 crore. Net box office collections came in at | 241.9 crore, up 1.0% YoY. F&B; revenues came in higher at | 111.4 crore, up 26.3% YoY,...

Footfalls declined by 1.1% yoy while for comparable properties it was down 3.4% yoy. of 55 screens for FY19. Ad growth is likely to continue in FY19 and we estimate 20% yoy increase in the same. Our estimates remain unchanged. PVR and Inox are likely to remain range bound till further clarity emerges on the recent F&B; issue. We believe, some changes would be recommended by government while form and intensity of the same lacks clarity. Till clarity emerges, we are cutting our target...

Overhang of F&B; impact largely factored into inexpensive valuations Inox reported healthy revenue growth YoY supported by better spend per head despite muted growth in BO revenue. EBITDA margin improved 70bps YoY to 20.1% due to healthy ad/SPH growth. Hindi Box office revenue is estimated to grow 27% and 53% YoY basis for Q2 and Q3 of FY19 respectively and scope of go downside from current levels is limited. Inox is currently trading at inexpensive valuations of 6.9x/5.8x based on our FY20/FY21 EV/EBITDA estimates. Maintain our BUY rating with a Sep'19...

Maharashtra intends to allow outside food and beverages inside multiplexes from August 1, 2018 (as announced by Food & Civil Supplies Minister in state legislature). The comment has come in the background of a public interest litigation (PIL) filed earlier (media link) challenging the ban on packed food, water bottles inside cinema halls on the grounds that it violates fundamental right to life of medically vulnerable persons & senior citizens. The Bombay High Court in its ruling in April, 2018, reiterated that patrons cannot be unilaterally prohibited from bringing their own food & water bottles inside...

Inox reported healthy revenue growth YoY on back of good ad and F&B; revenue. EBITDA margin improved 470bps YoY to 13.0% due to healthy ad/SPH growth. Hindi Box office collection is estimated to decline 19%YoY in Q1FY19 due to a high base of Bahubali-2; further, we continue to prefer Inox over PVR in anticipation of better ad/SPH growth. Inox is trading at fair valuations of 11.6/9.5 based on FY19/FY20 EV/EBITDA. We maintain our...

ICICI Securities Ltd | Retail Equity Research Q4FY18 revenues came in at | 323.6 crore, up 12.2% YoY and better than our expectations of | 315.9 crore on account of strong ATP growth of 10.9% YoY, which more than compensated for 2.8% YoY decline in footfalls (Padmavat did not release in four states, where Inox has ~20-22% of their total screens). Spend per head (SPH) grew 13.6% YoY to | 67 (vs. our expectation of 10.4% YoY). Net box office collections came in at | 189.5 crore, up 6.0% YoY, aided by ATP that...

The strong performance on ad revenue front continued this quarter also as Inox reported 33.3% YoY growth in ad revenues to | 40.3 crore (vs. our expectation of 22% YoY growth). ATP growth for the quarter grew handsomely by 9.6% YoY to | 199 (vs. our expectation of 6% YoY growth) aided by star studded release of Tiger Zinda Hai, Golmaal Again and Judwaa 2 during the quarter. Footfalls declined 2.7% YoY to 12.1 million (albeit ahead of our expectations of 12.0 million) on account of content heavy base (Dangal, MS Dhoni, Ae Dil Hai Mushkil,...

GST implementation restrict comparison of operating performance on yoy basis on account of input tax credit. Inox outperformed for the third consecutive quarter on advertisement revenues with robust 33% yoy growth. Footfalls declined 2.7% with comparable properties recording decline of 4.5% yoy, impacted by content performance. However, footfalls decline was partially offset by 10%...

ICICI Securities Ltd | Retail Equity Research Footfall was muted (up 0.4% YoY) at 12.8 million reflecting the weak box office performance of some of the marquee movies such as Jab Harry met Sejal and Jagga Jasoos, with the only silver lining being Toilet.. Ek Prem Katha, which performed well at box office. Net box office collections came in at | 185.6 crore, up 3.5% YoY, aided by 1.6% YoY ATP growth to | 186. F&B; revenues came in at | 67.1 crore, flattish YoY, with spends per head at | 65. Advertising revenues came...

Revenues came in at | 387.4 crore, up 15.0% YoY, aided by higher advertisement revenues which grew by 56.8% YoY to | 33.4 crore. While footfall at 15.8 mn (up 1.7% YoY) was muted, blockbuster slate in the form of Bahubali 2 and Tubelight enabled the company to take 10.9% YoY hike in ATP to | 193. Net box office collections came in at | 239.2 crore, up 12.0% YoY. F&B; revenues came in at | 88.2 crore (up 9.3% YoY), aided by 6.6% YoY growth in spends per head to | 65.. EBITDA at | 75.3 crore was higher than our expectation of | 69.1 crore...