The domestic stock markets have been loosely rising for the last one month on the hopes of a recovery in the corporate earnings for the quarter ended 31 March 2018. Over the course of the last one month, the key equity indices Sensex and Nifty have risen 6 to 7% with shares of IT sector outperforming the benchmarks coupled with a downturn in the Indian rupee. On a longer stretch, Sensex has returned more than 70% in the last seven years while a number of stocks have grown manifold in the same period under review.
We bring to you a multi-bagger media (mid-cap) stock that has gained nearly 1400% in the last seven years to buy and earn up to 40%.
Shares of Gurugram-headquartered Ajay Bijli-led film exhibition company PVR Ltd have risen nearly 1400% in the last seven years. The stock of PVR Ltd has grown 1390% to Rs 1,396.3 in the last seven years and one month from a share price level of Rs 93.7 (21 March 2011). Shares of PVR Ltd are categorised in the ‘A’ group shares on BSE and is an active component of SBP BSE 500 index, Nifty Media and Nifty 500 indices, respectively.
The research and brokerage firm Motilal Oswal Securities has given a buy rating to the stock of PVR with a potential upside of about 41% to a target price of Rs 1,760 from a recommendation price of Rs 1,248. “We expect revenue to grow 21% YoY to Rs 5,839 million in 4QFY18 on account of screen additions and strong content pipeline,” Motilal Oswal Securities said in a report. The margins are likely to expand ~360 basis points to 13.3% with a growth of 665 in EBITDA Rs 777 million. “We expect PAT to reach Rs 58 million in 4QFY18,” Motilal Oswal Securities added.
PVR Ltd was incorporated in 1977 following the joint venture between Priya Exhibitors Private Ltd and Village Roadshow Ltd. PVR is the largest film exhibitor in India so far. PVR has acquired other exhibitors such as Cinemax and DT Cinemas in 2012 and 2016, respectively.
PVR commands a market capitalisation of Rs 6,500 crore on BSE. In the financial year 2017-2018, PVR has distributed a dividend of Rs 22 per equity share of face value of Rs 10.
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