Any views from anyone on the recent underperformance of stock?
Though I am invested, the stock looks fully priced to me at current levels. Thinking of selling it. Looking for counter views here, please.
Rationale
-
PVR’s market cap/ operating margin ratio is 7.5 (1796 TTM profit, 13505 Mcap). Cineline’s annual operating profit from movie should be ~40 Cr → Valuation should be 300 Cr only for movie + 100 Cr for hotel one at most
-
Growth promised is not visible in terms of number of screens. In FY22 March investor presentation, the company outlook was to get to 300 screens by FY25. We might close this year with 160-170 screens. 300 looks far-fetched by next year. Operational screens have increased from 23 to 64 in two years; Looks slow.
-
The only positive I can see is ATP + SPH numbers being good. They have achieved FY25 target before time.
Would be great to hear counter opinions. What is the bull story here?
| Subscribe To Our Free Newsletter |
