Galaxy Entertainment Corporation Ltd
Bse Code: 506186
Market Price: Rs. 32.85
Galaxy Entertainment Corporation Ltd (Galaxy) is a part of Kishore Biyani's Future Group. Unlike other Future group companies, Galaxy has a negligible debt ( As on march 31, 2014, its Long-term borrowings stood at Rs. 4.75 crore) and not single share pledged by its promoters.
Incorporated in 1981 at Mumbai, Galaxy provides Leisure and Entertainment services such as Bowling, Sports Bar, Pool and Video games, Restaurant&bakery and Food courts etc. As on March 2014, the company operates 28 centres.
Food Stop is the company's new thrust are which are the food courts attached to the shopping malls.
SBX, the sports bar is on of the major revenue source of the company. The company is continues to focus on this segment by increasing its outlet numbers in new regions with high potential.
Shanghai Street is serves Chinese and Punjabi Adda provides North Indian dishes, which all are accepted by customers.
Young population with rising disposable income and increasing number of nuclear families with high urbanization gives immense growth opportunities for the company. Enhancing domestic tourism and expectation of high level living standards like Malls, Multiplexes too rise the leisure , entertainment and eating - out culture.
But, Still the company's financial performance is not so encouraging. For the FY-2013-14 Galaxy reported a revenue of Rs.46 crore and net profit of Rs. 3 crore including an other income of Rs. 12 crore. The first quarter of the current FY sales reported at Rs. 9.8 crore and posts net loss of 1 crore. The company's total market capitalization stood at around Rs. 50 crore only. Despite a dismal financials, this stock gives huge hope when we considering the company's growth potential and promoters background. So I am unable to give a price target for this stock but strongly feels that investors with patience can consider to BUY this stock for long - term view.
Disclaimer: I/My dependants have no investment in the above mentioned stock
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