Buy Cinemax with target of 66: Pankaj Pandey

In a chat with ET Now, Pankaj Pandey, Head of Research, ICICI Direct shares his views on various stocks.

ET Now: What is your call on Cinemax?

Pankaj Pandey: For Cinemax, we have a target price of 36. If we look at it compared to Q4, the occupancies were about 14%, which improved to about 26%. It is likely that in this quarter the occupancies could be in the range of about 30% odd for both PVR and Cinemax but then again from a short-term perspective, these stocks should benefit because the pipeline is still good for this quarter. It has been good and we are heading for a festive season.

So short term for these companies, things would pan out well on the P&L front. However, from a longer term perspective, these are not the kind of stocks one can really hold in their portfolio because the earnings are quite volatile. You have seasons like cricket wherein the occupancy levels stay low or if the content if it is not good, these businesses suffer.