Fourth Quarter FY22 Financials as Highlighted by Brokerage
First and foremost, as the brokerage report reminds us, “Inox Loisirs is the only national multiplex that benefits from a debt-free net balance sheet”.
-The company’s revenue increased slightly by 7.2% year-on-year to Rs. 317.7 crore during the reporting period. There is an increase in box office revenue up 14% QoQ.
-EBITDA came in at Rs. 14 crore, with margins at 4.5%. On a reported basis, EBITDA is placed at Rs. 78 crore, with margins of 24.6%.
Main investment triggers
-Strong content line to support dating/revenue recovery
– Benefits of a permanent cost saving (excluding rental) of 8 to 10%, taking into account the
– The merged entity (PVR Inox) will benefit from large-scale expansion and faster growth
trajectory and other revenue/cost synergies.
Buy for a target price of Rs. 670 per share
The brokerage mentions that the multiplex entity’s share price “has increased approximately 77% over the past five years (from approximately 278 levels in May 2017 to approximately 493 levels in May 2022). We maintain the BUY rating on the business and Inox value at Rs. 670 or 15x FY24E EV/EBITDA. The higher implied target multiple is due to the overall benefit induced by the merger.”
The security was selected in the brokerage report of ICICI Securities. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.