Inox Leisure - Biggest Beneficiary Of The Situation: Anand Rathi
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Anand Rathi Report
After trailing PVR Ltd. for several years, we find Inox Leisure Ltd. best suited to make the most of the situation as it has a strong balance sheet with Rs 1.3 billion net cash (versus PVR’s Rs 11.3 billion net debt), less cash burn/month till normalcy returns (Rs 0.4 billion vs. PVR’s Rs 0.6 billion) and has grown faster over FY17-FY20 on several key operating parameters.
All these factors enable Inox to expand faster in the next phase of the growth cycle and reduce the gap in the footprint with PVR (~643 screens, versus PVR’s ~844).
We introduce our FY23e and maintain our Buy rating with a new target price of Rs 340 (earlier Rs 292, valuing it at 10x FY23e Ebitda).
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