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Edelweiss
Cox & Kings (Buy)
CMP: ₹305.45
Target: ₹448
While India Leisure revenues grew at a stable rate of 13 per cent y-o-y, it was international leisure that recorded an impressive 28 per cent y-o-y growth for the quarter. Management mentioned most of this growth was driven by ex-Holidaybreak subsidiaries, mainly Cox & Kings (CNK), the UK and the US. For FY15, India/international leisure recorded 14 per cent/9 per cent y-o-y growth. Management has guided for long-term growth of about 4 per cent in international leisure.
Cox & Kings’ (CNK) Q4FY15 revenues, at ₹490 crore, were 13 per cent above estimate and down 1 per cent y-o-y. While leisure revenues grew 22 per cent y-o-y driven by international leisure, Meininger revenues fell 46 per cent y-o-y. Overall, CNK posted stable FY15 with revenues growing 11 per cent. The focus was on repayment of debt, which it successfully executed. The company repaid debt worth ₹1,800 crore during the year and its debt-to-equity ratio fell from 2.2x to 1.1x.
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