CLSA retains buy on Inox Leisure, raises target price to Rs 410

CLSA has retained buy rating on Inox Leisure in the long term and raised target price to Rs 410 from Rs 402. The stock ended down 0.38% at Rs 328.75 on Tuesday while the BSE Sensex closed 361.92 down at 38,305.41. The equity market was closed on Tuesday on account of Gandhi Jayanti.

Company Financials

For the quarter ended 30-06-2019, the company has reported consolidated sales of Rs 493.01 crore, up 2.96 % from last quarter sales of Rs 478.84 crore and up 18.81% from last year same quarter sales of Rs 414.94 crore. Company has reported net profit after tax of Rs 27.01 crore in the latest quarter.


Investment Rationale

Inox will be one of the largest beneficiaries of the cut in corporate tax rates in the coverage, with the company operating in the highest tax bracket, said CLSA. The brokerage has raised its FY20/21 estimates by16-19% to incorporate the impact of the lower tax rate and better content performance during the year.