Inox Leisure Ltd – Research Report By Karvy

Inox is the second largest player in the Indian movie exhibition industry and is narrowing its gap with the industry leader PVR on most of the metrics. We value the company on the basis of EV/EBITDA and assign multiple of 10x and arrive at target price of Rs.239 with “BUY” rating for period of 9-12 months representing an upside of 20%. We have given a premium to the valuation considering the Inox’s market position in movie exhibition business and stronger balance sheet. In movie exhibition industry, EV/EBITDA valuation for the multiplexes ranges in the band of 9-13 times.

Inox-Leisure-Karvy