Brics PCG puts BUY on PVR Cinema

Brics PCG research has recommended a buy on PVR Cinema with a target price of Rs 400 as against a current market price of Rs 299.

PVR plans to expand its reach to a total of 37 properties with 159 screens by FY08 so as to establish a pan-India presence.

Multiplex phenomena in a tremendous growth phase. Although multiplexes account for only 2.3% of the total screens in India, they contributed around 28-34% of the total box-office collections of the Top 50 Hindi films in FY04.

Over 60 additional multiplexes with more than 220 screens are to commence operations by the end of FY06, depicting a growth rate of 80-100% year-on-year from 73 multiplexes in FY04.