Talwalkars Better value Fitness - Pioneer in the Fitness Industry - Anand Rathi

One of the oldest and largest fitness brand in India.

- Aims to become a holistic Fitness player

1. Broadened its scope by introducing NuForm fitness studios, 2) ZUMBA® Fitness Program and 3) Reduce - weight loss diet program.

2. Increasing focus on optimizing service offerings to leverage the existing infrastructure and enhance customer portfolio.

- Broadening its scope, new initiatives to enhance the same store sales

- The company has widened its footprints in tier II, III, IV cities and towns of India. The company has developed HiFi model to penetrate in to smaller towns of India.

- Proven track record and consistent Financial Performance

3Yr CAGR (FY'09-12) of 21% in Net Revenues, 32% in EBITDA & 60% in PAT on standalone basis.

Valuations

We would like to value the company on EV/EBITDA basis at 7.6 on FY14E which gives a one year price target of Rs. 242 an upside of 30% from current levels. At target price the stock will trade at 14.3x for FY14E earnings.

Source : Equity Bulls

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