The wellness industry covers a large number of services including personal health counseling, fitness, beauty services and others.
Within this, fitness segment viz gyms market size is estimated at US$113mn and is growing at a healthy pace. Fitness industry should benefit from several structural positives prevalent in the domestic market.
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.
The full revenue impact would be visible in FY12 as majority of FY11 additions are likely to be backended. Based on a cumulative addition of 68 gyms in FY11-12, we forecast a 71%/102% CAGR in revenues/PAT. FY 12 EPS is expected to be Rs 13.4. Quite a Big Expectation there.