Cineline did 20 cr ebitda in q2-24 from cinema business with 64 screen operating, extrapolating it as an avg for 4qrts makes it rs 80cr ebitda(its naïve and too much of an optimism to assume this considering seasonality, hit releases etc, but just for sake of some estimation)
if they sold hotel for rs500cr(as they claim its the valuation) and added 230 screens (its from the company published info about cost of installing a screen) they should generate around rs300cr additional ebitda.
Currently hotel does an ebitda of rs 10 cr per year, so growing screen count looks like better capital allocation.
Its still however a riskier investment considering the past history, but it can playout well if they execute as per the published plan and maintain operating metrics.
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