Today's Intraday Stock Tips / Trading Calls (Keep strict Stop Loss for Each Trade):
|EDSERV SOFT SYSTEMS|
|SREI INFRA FINANCE|
Short to Medium Term Delivery Pick : PVR LTD. (532689) CMP Rs. 183/-
We expect average ticket prices to remain stable as the most of the roll out of new properties have taken place in tier-2 cities. However on the back of increasing consumption per capita in Tier-2 cities, we expect foot falls and occupancy rate in Multiplex properties to increase and drive revenue performance. We are positive about the company’s increasing revenue potential on the back of its strategy to add new properties and screens in tier-2 cities. Also PVR’s movie business is expected to drive top-line (with an opportunity to pre-sell satellite rights) with expected release of movies, one of which Khele Hum Ji Jaan Se releasing in Q3FY11 respectively. Thus,we maintain “BUY” rating on the stock with 12 target month price of Rs236 based on DCF methodology, which represents a potential upside of 31%. At the CMP of Rs180, stock is trading at FY11E and FY12E P/E of 16.3x and 10.1x and EV/EBITDA of 5.6x and 4.5x respectively.
(By K R Choksy)