Recommendations Talwalkars Better Value Fitness Limited

[chetan]

Talwalkars Better Value Fitness Limited (TBVF) is scheduled to open on Wednesday, April 21, 2010 and will close for subscription on Friday, April 23, 2010.

Talwalkars Better Value Fitness Limited (TBVF) is scheduled to open on Wednesday, April 21, 2010 and will close for subscription on Friday, April 23, 2010. A Small IPO

Snapshot of TBVF:
One of the largest fitness chain in India as per the statistics of the IHRSA Asia Pacific Report, 2008.
Pan India presence operating 58 Health Clubs dotting 28 cities serving over 55,000 members in 12 states of the country with successful ‘Hub and Spoke’ model.
TBVF was co-promoted in the year 2003 by the Talwalkar Group and the Gawande Group with the object of developing “Talwalkars” brand as a leader in health clubs. “Talwalkars” brand can be traced to its origin in 1932, when late Mr. Vishnu Talwalkar set up the first Gym in India, i.e. a history of over 75 yrs.
Pioneer in the Fitness Industry - Brand “Talwalkars” relates to the concept of “Gym” in India.
Provides standardised and quality health club service / facilities consistently across all the locations; supported by a 7500 sq ft residential training
academy.

More brokerage Reviews will be posted here.  Stay tuned.

[chetan]

Dalal And Broacha asks investors to AVOID the issue with the following note,

Estimated annualized EPS for the year 2009 – 2010 is Rs 2.37. The P/E at the higher band is approximately 54x and at the lower end of the price band is 52x. [Quite Expensive] The company operates in a highly competitive market and faces stiff competition from other players operating both in the organized and unorganized sectors. We recommend our investors to AVOID the issue.

[chetan]

HDFC Sec says the Issue is not cheap and can be AVOIDED at this stage,

TBVFL is engaged in the business of operating gym. It provides a wide range of services to the clients, which includes Fitness Training, Nutrition Centre and value Add-Ons. Nevertheless, the basic facilities of Gym continue to be the major contributor to revenues with 53% of total sales in FY 09. The metro cities dominate with 37.06% share of the total sales followed by Tier II and Tier I cities 33.55% and 29.37% share respectively.

Driven by addition of new gyms, increasing health awareness among consumers and attractive promotional schemes resulting in higher membership, TBVFL reported increase in net sales at a Compounded Annual Growth Rate (CAGR) of 66.12% in the past three years to Rs 51.78 crore in FY 09.

While there are no listed players in the space, the issue does not seem to be cheap. Scaling up and rolling out the planned centres could be challenging and could bring pressure on margins going forward. Once this process is complete without major hiccups, a fresh view can be taken on the stock.

[komal]

Unicon Wealth has the following view on the Offering,

At the upper price band of INR 128, the company is priced at 54x it’s FY10 annualised EPS of INR 2.37 on a post issue basis. However, considering the growth opportunity that TBVF presents (compounded revenue growth of ~33% and PAT expansion by 60% is expected in the next 2 years); we recommend SUBSCRIBE to the issue for long term investment gains.

[komal]

KR Choksey has the following recommendation,

At the higher band of Rs 128, the issue is priced at 53x FY10e earnings (annualized 9mFY10) and 28x FY12e earning, while at the lower end of Rs 123 it is priced at 51x FY10e earnings and 26.9x FY12e earning on fully diluted equity. The EPS is expected to register a CAGR of 40%( approx) between FY10 and FY12e but at the above mentioned price band, most of the growth is already factored in. Personal health and fitness forms part of lifestyle segment which has been growing fast due to increased awareness among populace and rising disposable income. Company’s execution track is also impeccable. Investors should subscribe to the issue with a time horizon of 18-24 months.

[arjelyn06]

Corporate people or the so called office men and women are having hard times in finding a right way to maintain a good healthy body. It's a good thing that there is a gym like this for busy Indian people who really love to do workouts at their most convenient times. Do you mind posting some relevant information here like the price and all other activities you offer with high technology equipments?