PVR locked at 20% upper circuit; likely to be re-rated
Shares of PVR were locked at 20 per cent upper circuit, Tuesday. The scrip has been on a roll for the past few days on expansion plans of the company.
By INDIATIMES NEWS NETWORK |
MUMBAI: Shares of PVR were locked at 20 per cent upper circuit, Tuesday. The scrip has been on a roll for the past few days on expansion plans of the company.
The share was at Rs 274.35, up Rs 45.70, with volume of 6,73,716 shares against two-week average of 1,66,401 shares.
On Thursday, the company announced investment plan of Rs 400 crore to increase 250 screens by 2010 from present 89 screens. It also launched its premium brand, PVR Premiere, targeted at urban consumers in metros.
The group is targeting at consolidated revenue of Rs 300 crore by the fiscal end. Currently, the company has 89 screens in 24 complexes across 14 cities. This fiscal, the company is adding 31 screens with a total capacity of about 8,000 seats.
"Going ahead, we see PVR’s margin to continue improving on the back of increase in number of e-tax exempt properties. Further PVR's backward integration into film production, will result in better bargaining power against other distributors, besides bringing in synergies across its value chain," said Mihir M Shah, sector analyst, Prabhudas Lilladher.
“PVR which was till now viewed as a pure multiplex player is now moving across the value chain with its foray into the film production and food court business. As the company scales up in these new ventures we see the stock getting re-rated upwards," he added.
The share has gained over 37 per cent since the announcement of investment. In the past one-month it has appreciated over 56.24 per cent.
The share was at Rs 274.35, up Rs 45.70, with volume of 6,73,716 shares against two-week average of 1,66,401 shares.
On Thursday, the company announced investment plan of Rs 400 crore to increase 250 screens by 2010 from present 89 screens. It also launched its premium brand, PVR Premiere, targeted at urban consumers in metros.
The group is targeting at consolidated revenue of Rs 300 crore by the fiscal end. Currently, the company has 89 screens in 24 complexes across 14 cities. This fiscal, the company is adding 31 screens with a total capacity of about 8,000 seats.
"Going ahead, we see PVR’s margin to continue improving on the back of increase in number of e-tax exempt properties. Further PVR's backward integration into film production, will result in better bargaining power against other distributors, besides bringing in synergies across its value chain," said Mihir M Shah, sector analyst, Prabhudas Lilladher.
“PVR which was till now viewed as a pure multiplex player is now moving across the value chain with its foray into the film production and food court business. As the company scales up in these new ventures we see the stock getting re-rated upwards," he added.
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The share has gained over 37 per cent since the announcement of investment. In the past one-month it has appreciated over 56.24 per cent.
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