Talwalkars Better Value Fitness Research Report By HDFC Sec

We feel TBVFL is capable of trading at 15xFY16E EPS, which gives a price target of Rs. 336. TBVFL is a branded retailer of services and hence can be compared with other multi-brand retailers like Shoppers Shop, Pantaloon, Trent, Marico Kaya etc for valuation purpose, through its business model is different. TBVFL trades at a significant discount to Shoppers Stop, Trent & Marico Kaya on EV / EBITDA basis (TTM), which further provides comfort to valuations. We recommend investors to but this stock at current levels & average it on dips to Rs. 235-247 (10.5-11xFY16E EPS) for our price target over the next 1-2 quarters.

Download TBVFL HDFC Sec Research Report