Sharmila Joshi of Prabhudas Lilladher has suggested investors to buy PVR stock to achieve a short-term target of Rs 392.
Joshi told, “The kind of roll out PVR has had and the way they are trying to spread not in geography but also the kind of offerings they have like different models for tier 2 cities and different models for a high end customer who can pay more. They already had the Tare Zameen Par release, which has really been quite successful and we can look forward to more such going ahead. So if you see their business in totality and not just the way they have positioned in the multiplex but also in the production things and business, this is the stock which we like and we do expect earnings to grow at around 53% kind of average for the next couple of years. We have a target of Rs 392 on this stock."
Today, the stock opened at Rs 259.70 as against its previous close at Rs 247.35 on BSE. Current P?E and EPS stood at 29.07 and 8.93 respectively. The stock has also seen a 52-week high of Rs 376.95 and a low of Rs 148.35 on BSE.
Last week, PVR has entered into partnership contract with Thailand-based Major Cineplex Group to bring lifestyle entertainment concepts to Indian consumers.
The JV would establish bowling alleys, karaoke centers, ice skating rinks and gaming zones in and around the company’s multiplexes to complete the out of home experience for Indian consumers.
PVR plans to cater to the evolving tastes of today`s Indian consumers where there has been a significant increase in consumption expenditure due to rising disposable incomes on account of sustained growth in all income levels, said the company in a release.
The JV plans to set up 150-200 lanes in the next three years in key cities across India.