Talwalkars Better Value Fitness Q4FY17: Way2wealth retain BUY rating

Way2wealth | April 18, 2013, midnight

Q4FY17 Result Highlights:

  • Net Sales grew by 12.5% YoY to Rs900mn.
  • EBITDA margins expanded by 149bp YoY to 70.2%.
  • PAT grew by 21.6% YoY to Rs246mn.

Valuations & Recommendations:

At CMP of Rs 305, Talwalkars is currently trading at a PE of 9.7x FY19E and EV/EBITDA of 5.0x FY19E.  Given the Company's  a) strong growth prospects given its leadership position in highly under penetrated and growing market  b) 19% PAT CAGR over FY17-19E and c) average ROE of 15% through FY17-19E, we value the company at 12xFY19E EPS with a target price of Rs 378.  We reiterate a BUY rating on the stock.

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