Adlabs stands to gain from operating leverage once all three properties are fully functional and witness an increase in footfall. At an EV/CE of 1.7x we note that Adlabs demands a significant discount to both its domestic and global peers. We assign a Subscribe rating to the IPO, says Emkay.
Adlabs IPO size is of Rs 470 crore, with a primary objective to retire portion of the consortium loan and to de-leverage its balance sheet. Post IPO the promoters holding will decrease from 77 percent to 57 percent.
Imagica, Aquamagica and the hotel are situated in an enviable location between the cities of Mumbai and Pune. It is set to become a multi-day destination by not only providing visitors with Imagica/Aquamagica, but also by activating the hotel and near-by locations such as Lonavala and Khandala
Key concerns include risk of accid.ents that have a detrimental effect on brand value, competition from new theme parks in the region and outbreak of contagious diseases.
While it is yet to turn profitable Adlabs demands a discount on EV/CE basis when compared to domestic and global peers.
Adlabs Entertainment is promoted by Mr Manmohan Shetty, and owns and operates two theme parks (Adlabs Mumbai) on the Mumbai-Pune expressway, namely, Imagica Theme Park (Imagica) and Aquamagica Water Nation (Aquamagica). The company also owns a hotel managed by Novotel which is expected to start operations in March, 2015. Imagica has 25 rides and attractions while Aquamagica houses 14 water slides and wave pools. It is the first large format theme park in India covering over 110 acres.
Adlabs stands to gain from operating leverage once all three properties are fully functional and witness an increase in footfall. At an EV/CE of 1.7x we note that Adlabs demands a significant discount to both its domestic and global peers. We assign a subscribe rating to the IPO.
Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
To read the full report click here
Anda sedang membaca artikel tentang
Adlabs IPO: Subscribe to the thrilling ride, says Emkay
Dengan url
http://untukkesehatanda.blogspot.com/2015/03/adlabs-ipo-subscribe-to-thrilling-ride.html
Anda boleh menyebar luaskannya atau mengcopy paste-nya
Adlabs IPO: Subscribe to the thrilling ride, says Emkay
namun jangan lupa untuk meletakkan link
Adlabs IPO: Subscribe to the thrilling ride, says Emkay
sebagai sumbernya
0 komentar:
Posting Komentar