In last 6 months, promotors reducing their stake in the company, QIP of 107 Crores (at price of 305 per share) thereby expanding equity by 13.5% brought stock down from Rs 400 to current price of Rs. 250.Their 50:50 JV with David Lloyd Leisure Ltd UK in club business would be a drag for short term.
But I think health club business is a lifestyle play which is long term trend in developing country like India. % of penetrations of health clubs is poor as compared to developed world. With Market cap of 736 Crores, trailing PE value of 17 and 5 years compounded sales growth of 25% and profit growth of 40%, I think this stock is attractively priced.
Please see recent new item in money control
http://www.moneycontrol.com/news/recommendations/buy-talwalkars-targetrs-319-cd-equisearch_3634741.html
Disclosure : invested from lower levels. No new investment in last 90 days.
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