Small-cap investment idea: Buy this share to gain 51%; stock available at price below Rs 100

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Updated: June 1, 2018 3:25:54 PM

We take a look at a small-cap entertainment stock price below Rs 100. According to a domestic research firm, this stock can return up to 51%.

Photo for representational purposes only. (Image: PTI)

India’s share market has seen heightened volatility in the current year due to over a week-long global sell-off in February, trade war between world’s largest economies — US and China, one after another banking frauds after unwinding of PNB’s mega scam. In the last five-month period of 2018, benchmark indices Sensex and Nifty have risen 2-4% only while blue-chip shares such as D-Mart, Tech Mahindra and Kotak Mahindra Bank have grown more than 30%.

We take a look at a small-cap entertainment stock price below Rs 100 that has fallen around 20% in the last one year. According to a domestic research firm, the stock can return up to 51%.

Shares of Prime Focus have declined nearly 20% to Rs 87.4 from a share price level of Rs 109.05 as on 1 June 2017. The research and brokerage firm Motilal Oswal Securities has given a ‘buy’ with a target price of Rs 130 which implies an upside of 51% from the current market price.

Shares of Prime Focus are categorised in the ‘B’ group on BSE and are a part of S&P BSE Small Cap and Nifty Media indices, respectively. Prime Focus commands a market capitalisation of Rs 2,577 crore on the basis of a share price of Rs 86.15 on BSE.

Earlier yesterday, the board of Prime Focus approved the issue of secured/unsecured non-convertible debentures and/or other debt securities, in one or more tranches, within the overall borrowing limit of the company, on a private placement basis, subject to approval of the shareholders of the company, for an amount of up to Rs 500 crore.

Disclaimer: Views and recommendations given in this section are the brokerage firms’ own and do not represent those of Please consult your financial adviser before taking any position in the stock/s mentioned.

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