Fundamentals

INOX LEISURE

Ticker: 532706 BUY: Rs.276.15
Target: Rs.310

The company is engaged in operating multiplex cinema theatres and is in the business segment of film exhibition. It accounts for ~20 per cent share of the multiplex screens in India and ~8 per cent share of domestic box office collections. The strong content in Q4FY18 led to 10.9 per cent growth in ATP, which drove its topline . Some of the big budget movies are set to be released in the upcoming months, which will continue to boost the ATP and revenue. In FY18, the advertisement segment has grown by more than 30 per cent and it is one of the key drivers for the company's growth. The management has guided to open 55 new screens in FY19 with capex of Rs 250-260 crore. It is trading at attractive multiple of 23.8x as compared to its peers. Considering these factors, we recommend it as a BUY.



INTELLECT DESIGN ARENA

Ticker: 538835 BUY: Rs.202.20
Target: Rs.233

The company is a global leader in financial technology for banking, insurance and other financial services. It has presence in Europe, USA, India and other emerging and growing markets. The licence revenue and AMC revenue have grown at CAGR of 32 per cent and 24 per cent , respectively, over FY15-18. On the financial front, the company witnessed a turnaround in FY18, while it had incurred losses up to FY17. In Q4FY18, its revenue was up by 27.6 per cent YoY to USD 47.7 mn due to higher licence component. The EBITDA margin expanded to 8 per cent for the quarter. It has a strong order book in the pipeline and has won four large digital transformation deals in Q4FY18. It has also won six other deals during the quarter, thereby giving decent revenue visibility. Owing to these factors, we recommend it as a BUY.