Friday, August 29, 2008

Stock Idea: Pyramid Saimira Theatre Ltd (PSTL)

Pyramid Saimira Theatre Ltd (PSTL) is India’s largest theatre chain company operating mainly across South India. The company has posted good results for the first quarter ended 30th June 2008. It would not be fair to compare the performance of Q1 of current year with that of Q1FY08 as the company has grown much larger than what it began with.
Its net revenue for the first quarter rose to Rs.250.15 crore as against Rs.245.45 crore in Q4FY08. Of this net revenue, Rs.182.38 crore came via exhibition income, which is a QoQ rise of 113%. It earned Rs.67.77 crore via food & beverages (F&B), which is again a whopping 114% QoQ rise.
Sequentially, PBT for current Q1 was lower by 7.61% but as against a loss of Rs.3.11 crore in Q4FY08, it posted a net profit of Rs.13.45 crore. What is surprising is that though the company has gone much more than what it was during Q1FY08, its profit margins were much lower. So doesn’t this mean that though the business has grown, margins have declined considerably? Though YoY its income has grown 104%, its margins have slipped.
In Q1FY08, the company had 371 screens and the average revenue per user was Rs 38.20 including F&B revenue. As against this, by current Q1, the company had 802 screens in India, with 414 screens in Tamil Nadu, 96 in Karnataka and 265 in Andhra Pradesh and 27 in other states. The average revenue per user was Rs 41.49 including F&B revenue.
In Q1FY08, the company had 306.25 lakhs footfalls with an average occupancy rate of 44.26%, with a total seat capacity per show of 2.41 lakhs. As against this, in current Q1, the company had 602.85 million footfalls and the average occupancy rate dropped to 33.72%. Its total seat capacity per show stood at 5.09 lakhs.
Surviving solely on exhibition would not exactly give a superlative growth to the company and knowing this fully well, it is developing its F&B segment into more than just a provider of snacks and drinks at the theatres. It is trying to create a niche for itself in the F&B segment with 3 food courts, 1 restaurant and 110 cafeterias inside theatres in operation with the following brands – Apple Tree, Red Curry, Shivalay, Augrita, Asparagus, Thall, Cineteria, Beverage & More and the latest being Brahmin’s Kitchen, an initiative to bring traditional Brahmin food in the modern format. This division of PSTL is well on its growth path in becoming a full-fledged food and restaurant business entity.
For this year, in the first half of the current fiscal, the revenues are expected to come in from the recently released Rajanikanth – starrer film, Kuselan, for which it has bagged worldwide release rights, with 11 years Intellectual Property Rights (IPR) of much talked about, in both Tamil and Telugu for an undisclosed amount.
Yesterday, the stock price rose nearly 3% to Rs 138 on reports the company is close to acquiring UK’s oldest theatre chain Reel Cinemas, earlier Associated British Cinemas or ABC, for around Rs 200 crore.
Stay invested. Picture abhi baaki hai!
Pyramid Saimira had earlier distributed / exhibited “Sivaji” in Tamilnadu, Andhra Pradesh, Karnataka, and Malaysia with 252 screens, 928 shows daily and 6.78 lakh seats and earned considerable collections. Pyramid Saimira distributes almost eight films a month on an average in Tamil, Telugu, Hindi, Kannada, Malayalam and many other languages.
Source: sptulsian.com

Intraday Trading Calls for 29th August

Indian Stock Market may open gap up and may see a smart rally today. A good strong positive closing expected.


Today's Intraday Trading Calls / Stock Tips (Keep Appropriate Stop Loss for each trade):


MPHASIS BFL (237)

Buy Above 238.90 Target 244.25, 250.00

Sell Below 235.40 Target 231.75, 227.00

CORE PROJECTS (288)

Buy Above 290.70 Target 296.45, 304.00

Sell Below 285.55 Target 280.35, 275.00

PSTL (137)

Buy Above 138.20 Target 142.50, 146.00

Sell Below 135.70 Target 132.25, 128.00

DECCAN CHRONICLE (DCHL) (118)

Buy Above 118.85 Target 122.35, 126.00

Sell Below 116.55 Target 113.75, 110.00

VOLTAS (120)

Buy Above 120.90 Target 123.75, 127.00

Sell Below 118.75 Target 115.50, 112.00

RPL (154)

Buy Above 155.35 Target 158.45, 161.00

Sell Below 153.20 Target 151.05, 149.00

Others for Intraday: CAIRN INDIA, ACC, INDIA CEMENT, PRISM CEMENT, CHAMBAL FERTILIZER.
GOOD LUCK

Disclaimer

The information in this publication is provided by http://www.moneybazzar.blogspot.com/ is intended for use for Readers & Traders . Every effort is made to provide accurate information, but http://www.moneybazzar.blogspot.com/ cannot guarantee the accuracy of the information or of the market analysis. This is a newsletter and is for informational purposes only. It is not a solicitation or offer to buy or sell futures. There is a high risk of loss in trading futures. You should not trade with money that you cannot afford to lose. No representation is being made that any account will or is likely to achieve profits or losses similar to those discussed on this newsletter. The past performance of any trading system or methodology is not necessarily indicative of future results.



free counter