BSE:532706

Stock Analysis Report

Executive Summary

INOX Leisure Limited operates and manages multiplexes and cinema theatres under the INOX brand name in India.


Snowflake Analysis

Reasonable growth potential with proven track record.

Share Price & News

How has INOX Leisure's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 532706 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.3%

532706

1.3%

IN Entertainment

0.2%

IN Market


1 Year Return

62.5%

532706

-0.8%

IN Entertainment

7.2%

IN Market

Return vs Industry: 532706 exceeded the Indian Entertainment industry which returned -3.3% over the past year.

Return vs Market: 532706 exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

532706IndustryMarket
7 Day0.3%1.3%0.2%
30 Day6.2%5.0%2.1%
90 Day10.2%4.3%5.7%
1 Year62.9%62.5%-0.1%-0.8%9.2%7.2%
3 Year63.7%63.3%-4.8%-6.2%33.1%26.2%
5 Year120.6%120.0%20.4%19.6%35.6%23.5%

Price Volatility Vs. Market

How volatile is INOX Leisure's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is INOX Leisure undervalued compared to its fair value and its price relative to the market?

26.08x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: 532706 (₹394.5) is trading above our estimate of fair value (₹198.35)

Significantly Below Fair Value: 532706 is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 532706 is poor value based on its PE Ratio (26.1x) compared to the Entertainment industry average (23.7x).

PE vs Market: 532706 is poor value based on its PE Ratio (26.1x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: 532706 is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: 532706 is overvalued based on its PB Ratio (5.7x) compared to the IN Entertainment industry average (0.7x).


Next Steps

Future Growth

How is INOX Leisure forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

20.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 532706's forecast earnings growth (20.6% per year) is above the savings rate (6.5%).

Earnings vs Market: 532706's earnings (20.6% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: 532706's revenue (12.5% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: 532706's revenue (12.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 532706's Return on Equity is forecast to be low in 3 years time (18.6%).


Next Steps

Past Performance

How has INOX Leisure performed over the past 5 years?

31.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 532706 has high quality earnings.

Growing Profit Margin: 532706's current net profit margins (7.6%) are lower than last year (8.4%).


Past Earnings Growth Analysis

Earnings Trend: 532706's earnings have grown significantly by 31.9% per year over the past 5 years.

Accelerating Growth: 532706's earnings growth over the past year (22.4%) is below its 5-year average (31.9% per year).

Earnings vs Industry: 532706 earnings growth over the past year (22.4%) exceeded the Entertainment industry 12.9%.


Return on Equity

High ROE: 532706's Return on Equity (21.5%) is considered high.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is INOX Leisure's financial position?


Financial Position Analysis

Short Term Liabilities: 532706's short term assets (₹1.6B) do not cover its short term liabilities (₹3.8B).

Long Term Liabilities: 532706's short term assets (₹1.6B) do not cover its long term liabilities (₹24.4B).


Debt to Equity History and Analysis

Debt Level: 532706's debt to equity ratio (7.7%) is considered satisfactory.

Reducing Debt: 532706's debt to equity ratio has reduced from 82.9% to 7.7% over the past 5 years.

Debt Coverage: 532706's debt is well covered by operating cash flow (820.6%).

Interest Coverage: 532706's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet

Inventory Level: 532706 has a high level of physical assets or inventory.

Debt Coverage by Assets: 532706's debt is covered by short term assets (assets are 3x debt).


Next Steps

Dividend

What is INOX Leisure's current dividend yield, its reliability and sustainability?

0.51%

Current Dividend Yield


Dividend Yield vs Market

company0.5%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Years0.3%

Current dividend yield vs market & industry

Notable Dividend: 532706's dividend (0.51%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: 532706's dividend (0.51%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether 532706's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if 532706's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 532706's dividends in 3 years are forecast to be thoroughly covered by earnings (7.2% payout ratio).


Next Steps

Management

What is the CEO of INOX Leisure's salary, the management and board of directors tenure and is there insider trading?

7.1yrs

Average management tenure


CEO

Alok Tandon 0

10.8yrs

Tenure

0

Mr. Alok Tandon has been the Chief Executive Officer of INOX Leisure Limited since April 2009 and its Manager since June 18, 2007. Mr. Tandon serves as the Chief Operating Officer of Inox Leasing and Finan ...


CEO Compensation Analysis

Compensation vs Market: Alok's total compensation ($USD0.00) is below average for companies of similar size in the Indian market ($USD402.62K).

Compensation vs Earnings: Alok's compensation has been consistent with company performance over the past year.


Management Age and Tenure

7.1yrs

Average Tenure

Experienced Management: 532706's management team is seasoned and experienced (7.1 years average tenure).


Board Age and Tenure

13.8yrs

Average Tenure

52yo

Average Age

Experienced Board: 532706's board of directors are seasoned and experienced ( 13.8 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Buy₹487,49626 Sep 19
Jitender Verma
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares1,500
Max Price₹325.00
Sell₹1,131,41726 Sep 19
Jitender Verma
EntityIndividual
Role
Chief Information Officer
Chief Information Officer
Shares3,500
Max Price₹325.01
Sell₹3,499,99925 May 19
Alok Tandon
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares10,000
Max Price₹350.00
Sell₹1,361,72801 Mar 19
Alok Tandon
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares5,000
Max Price₹272.35

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 5.8%.


Management Team

  • Yammanuru Muralikrishna

    Chief People Officer

    • Tenure: 14.3yrs
  • Alok Tandon

    Chief Executive Officer

    • Tenure: 10.8yrs
  • Kailash Gupta

    Chief Financial Officer

    • Tenure: 3.4yrs
  • Parthasarathy Iyengar

    Company Secretary & Compliance Officer

    • Tenure: 1.6yrs
  • Saurabh Varma

    Chief Marketing Officer

    • Rajender Singh Jyala

      Chief Programming Officer

      • Daizy Lal Puri

        Chief Operating Officer

        • Shirish Handa

          Chief Business Development Officer

          • Jitender Verma

            Chief Information Officer

            • Anand Vishal

              Chief Sales Officer


              Board Members

              • Haigreve Khaitan (49yo)

                Non-Executive Independent Director

                • Tenure: 12.3yrs
                • Compensation: ₹260.00k
              • Amit Jatia (52yo)

                Non-Executive Independent Director

                • Tenure: 8.7yrs
                • Compensation: ₹260.00k
              • Siddharth Jain (41yo)

                Non-Executive Director

                • Tenure: 15.3yrs
                • Compensation: ₹240.00k
              • Deepak Asher (60yo)

                Non-Executive Director

                • Tenure: 20yrs
                • Compensation: ₹3.28m
              • Pavan Jain (68yo)

                Non-Executive Chairman

                • Compensation: ₹18.64m
              • Vivek Jain (64yo)

                Non-Executive Director

                • Tenure: 20.3yrs
                • Compensation: ₹60.00k
              • Girija Balakrishnan (50yo)

                Non-Executive Independent Director

                • Tenure: 5.1yrs
                • Compensation: ₹160.00k

              Company Information

              INOX Leisure Limited's company bio, employee growth, exchange listings and data sources


              Key Information

              • Name: INOX Leisure Limited
              • Ticker: 532706
              • Exchange: BSE
              • Founded: 1999
              • Industry: Movies and Entertainment
              • Sector: Media
              • Market Cap: ₹39.276b
              • Shares outstanding: 98.52m
              • Website: https://www.inoxmovies.com

              Number of Employees


              Location

              • INOX Leisure Limited
              • Viraj Towers
              • 5th Floor
              • Mumbai
              • Maharashtra
              • 400093
              • India

              Listings

              TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
              532706BSE (Mumbai Stock Exchange)YesEquity SharesININRFeb 2006
              INOXLEISURNSEI (National Stock Exchange of India)YesEquity SharesININRFeb 2006

              Biography

              INOX Leisure Limited operates and manages multiplexes and cinema theatres under the INOX brand name in India. As of January 16, 2020, it operated 147 multiplexes and 617 screens with a total seating capacity of 143,699 seats in 68 cities. The company was founded in 1999 and is based in Mumbai, India. INOX Leisure Limited is a subsidiary of Gujarat Fluorochemicals Limited. 


              Company Analysis and Financial Data Status

              All financial data provided by Standard & Poor's Capital IQ.
              DataLast Updated (UTC time)
              Company Analysis2020/01/20 12:44
              End of Day Share Price2020/01/20 00:00
              Earnings2019/09/30
              Annual Earnings2019/03/31


              Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.