ICICIdirect has maintained 'Buy' on Inox Leisure (INOX) with target price of Rs 210 against the current market price of Rs 155 in its report.

Commenting on the investment rationale, the stock broker said, "We can attribute revenue growth of 17.3% YoY to higher-than expected other operating income, which came in at Rs 257 million vs. Rs 135 million in Q4FY14. Net box office collections came in at Rs 1.12 billion and were in line with estimates. F&B revenues came in at Rs 374 million, getting a boost from higher-than-expected spends per head, which grew 8% YoY to Rs 53. Advertising revenues were in line with expectations at Rs 198 million.

The management indicated continued traction in the revenue stream owing to robustness seen in online ticketing revenues and virtual print fees. We expect revenues from the stream to reach Rs 920 million by FY17E from Rs 715 million in FY15.

We expect consolidated revenue and EBITDA growth of 18.2% and 36.8% CAGR, respectively, in FY15-17E, led by ATP uptick and increased occupancies aided by the higher property roll-out. Though the aberrance in the box office performance of movies could be a downside risk to our estimates, we continue to maintain Buy rating valuing it at 21x P/E on FY17 EPS. Treasury shares have been valued at a 50% discount to the market price. Hence, we arrive at a target price of Rs 210."

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