Tips for buying shares: Whopping 45% gains in this stock - Should you buy? Check what experts suggest
Fundamentals of the INOX Leisure counter suggests a potential rise of near 45 per cent, according to equity experts.
From fundamental's point of view, INOX Leisure reported revenue growth of 33 per cent Y-o-Y to Rs 4,331mn in Q3FY19, led by healthy growth across all business segments. EBITDA margin surged 510bp Y-o-Y to 19.3 per cent, supported by strong growth in the high margin ad & F&B segment. PAT grew almost 3 times Y-o-Y to Rs 366mn on better profitable growth.
Speaking on the fundamentals that suggest a bull run in the counter Karan Taurani, Research Analyst at Elara Securities informed Zee Business in a detailed research report citing, "Inox has added 68 screens to date and has provided guidance of 80 screen additions in FY19. Box office collection is expected to remain strong in Q4FY19, led by the recent success of movies like Simmba and Uri, supported by the release of big movies like Gully Boy, Total Dhamaal and Kesari. SPH growth remains to be healthy for FY19 and has the potential to grow further as discount against PVR continues to narrow (25 per cent in FY18 vs 13 per cent in Q3); traction in ad revenue too remains strong, led by better realization on an improved brand image (Insignia expansion) and consistent execution."
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On what is the suggestion for market investors in regard to Inox Leisure counter Karan Taurani of Elara Securities told, "The fundamentals of the counter suggests an upside potential of near 45 per cent. An investor can take a buy position in the stock for the target price of Rs 390 per share levels." Currently the counter is oscillating around Rs 268 per share levels.
Warning investors to maintain a strict stop loss SEBI registered tehnical equity analyst Simi Bhaumik told, "In short-term perspective the counter looks strong and if it sustains above Rs 260 per stock levels, it would show Rs 280-290 levels in around one month. I would recommend investors to take a buy position in this stock above Rs 260 levels and maintain a strict stop loss below Rs 260 levels."