My Investment Idea No. 3 - Inox Leisure

Long Term Investment Idea No. 3

Inox Leisure

1.    Face Value = Rs 10

2.    Equity = 102.64 Cr

3.    Price: Rs 358

4.    Inox Leisure operates 600 screens in 144 multiplexes spread across 68 cities. Inox Leisure is the fastest growing multiplex chain in India and has added 85 new screens in last financial year. 900 more screens are in pipeline and all will be part of Malls. It plans to add 80-100 screens every year.

5.   Sep Qtr results shows that margins increased from 12.3% to 32% YoY. F&B growth has been phenomenal and average ticket size was flat at Rs 196. Footfalls increased 39% YoY to 19 millions.

Company Results Overview

Yearly:

                         Net Sales (NS)/ Net Profit (NP)/ Earning Per Share (EPS)

6.    FY 2015: Rs 1016.82 Cr/  Rs 20.04 Cr /  Rs 1.95
7.    FY 2016: Rs 1332.69 Cr/  Rs 77.49 Cr /  Rs 7.55
       Yearly YoY Growth in NP      =  286.67% 
8.    FY 2017: Rs 1220.71 Cr/  Rs 30.62 Cr /  Rs 2.98
       Yearly YoY De-Growth in NP =  60.48%
9.    FY 2018: Rs 1348.12 Cr/  Rs 114.63Cr/  Rs 11.16
       Yearly YoY Growth in NP       =  274.36%
10.  FY 2019: Rs 1692.18 Cr/  Rs 133.49 Cr/  Rs 13.00
       Yearly YoY Growth in NP       =  16.45%

11.  In last 5 years, the profit has grown 566.117% from Rs 20.04 Cr to Rs 133.49 Cr
Jun 18 (FY 2019).

Quarterly:

12.   Jun 18 (FY 2019):  Rs 414.94 Cr/ Rs 36.99 Cr/ Rs 3.6
13.   Jun 19 (FY 2020):  Rs 493.01 Cr/ Rs 27.01Cr/  Rs 2.63
        Quarterly YoY De-Growth in NP =  26.98%
14.   Sep 18 (FY 2019): Rs 365.31 Cr/ Rs 11.97 Cr/  Rs 1.17
15.   Sep 19 (FY 2020): Rs 519.94 Cr/ Rs 35.13 Cr/  Rs 3.42
        Quarterly YoY Growth in NP       =  193.48%

Half Yearly:

16.   HY FY 2019:          Rs 779.94 Cr  /  Rs 48.96/  Rs 4.77
17.   HY FY 2020:          Rs 1012.95 Cr/  Rs 62.14/  Rs 6.05

18.   Net Profit in 1st Half of FY 2020 grew by 26.83% to Rs 62.14 Cr as compared to Net Profit of Rs 48.96 Cr for FY 2019.

19.   This stock is on my Radar. After touching a high of Rs 391 on 04 Nov 19, it corrected to Rs 352 to 353. It is now trading at Rs 366.

20.   The stock price has risen from Rs 25 in 2009 to Rs 366 as on 10 Dec 19. It has given amazing returns during these years. The management of Inox Leisure has worked tirelessly to award its shareholders in the past and I am confident that this stock is likely to reward its shareholders in future too as I personally believe that Entertainment Business is going to remain Recession Proof.

Disclaimer:

The post written above is not to be taken as a "Buy Recommendation" by the author for Inox Leisure and no should take a decision to buy this stock based on the information given in this blog. This blog is written only to publish the views of the author, which could be right or wrong. You must consult your Financial Adviser before taking a decision to invest in Inox Leisure.