Talwalkars Better Value Fitness - Strong, in-line performance - IDBI Capital

Talwalkars Better Value Fitness (TBVF) reported revenue growth of ~30% YoY, in-line with expectation in a seasonally strong quarter. OPM expanded by ~400 bps YoY to ~50.5% and was better than estimates due to lower other expenditure. APAT increased ~47% YoY and was marginally better than estimate due to higher OPM. During the quarter the company opened no new gyms but introduced Zumba classes in 15 centres.

The stock has run-up by ~25% over the last month and thus we downgrade the stock from BUY to ACCUMULATE with an unchanged target price of Rs214 (15x FY14).

Source : Equity Bulls

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