Buy Talwalkars Better value Fitness; target of Rs 241: IIFL

IIFL is bullish on Talwalkars Better value Fitness and has recommended buy rating on the stock with a target of Rs 241 in its September 2, 2010 research report.

“Talwalkars Better Value Fitness (TBVF) is amongst the largest fitness chains in the country operating 66 health clubs (including JVs/franchisees), serving over 55,000 members. Incorporated in April ’03, the company offers diverse suite of services including gyms, spas, aerobics and health counseling. Although TBVF operates in a fragmented and competitive market, it has ample room for growth on account of 1) under-penetrated membership rates 2) favourable structural factors and 3) pan-India presence. It plans to add 38 owned gyms in FY11 partly funded by IPO proceeds. Based on cumulative additions of 68 gyms in FY11-12 and estimated annual accrual of Rs 20 million per gym, we project a 4-fold jump in PAT over the next two years. Recommend BUY,” says IIFL research report.