ICICIdirect has maintained 'Buy' on Cox & Kings with target price of Rs 360 as against current market price (CMP) of Rs 306in its report.

Commenting on the investment rationale, ICICIdirect said, ''C&K's Q4FY15 revenues declined 1.1% YoY led by a slowdown in the Meininger segment (hotels) in Europe, which recorded 46% YoY drop in revenues to Rs 820 million.

On the other hand, Leisure-India, Leisure-international and education division reported revenue growth of 13%, 29% and 12%, respectively. The company concluded the sale of the camping division in the previous quarter.

Hence, YoY results are not comparable on a like-to-like basisEBITDA margins also declined 163 bps YoY as the education division reported an EBITDA loss of Rs 320 million during quarter owing to higher bonus payouts, additional expenses on rollout of additional capacity and maintenance costs.

However, with net forex gain of Rs 1.24 billion, the company managed to report a net profit of Rs 646 million during the quarter.

With healthy outlook for leisure and education division, we expect the company to reduce its debt further by Rs 6 billion over next two years despite moderation in the revenue growth due to sale of camping division. We continue to maintain BUY on the stock with a revised price target of Rs 360 a share i.e. valuing at 12x FY17E EPS).''

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