PVR firmly in the picture as promoter hikes stake

PVR galloped 7.79% to Rs 137 at 15:22 IST on BSE, after one of the promoter group companies hiked its stake in the firm.

The company made this announcement after market hours on Monday, 9 November 2009.

Meanwhile, the BSE Sensex was down 54.08 points, or 0.33%, to 16,444.64.

On BSE, 1.40 lakh shares were traded in the counter as against an average daily volume of 1.03 lakh shares in the past one quarter.

The stock hit a high of Rs 138.10 and a low of Rs 129.50 so far during the day. The stock had hit a 52-week high of Rs 157.70 on 25 September 2009 and a 52-week low of Rs 57.50 on 2 December 2008.

The small-cap stock had underperformed the market over the past one month till 9 November 2009, falling 8.99% as compared to the Sensex's 0.86% fall. It had also underperformed the market in the past one quarter, rising 5.74% as compared to the Sensex's return of 8.83%.

The company's equity capital is Rs 23.01 crore. Face value per share is Rs 10.

The current price of Rs 137 discounts the company's Q2 September 2009 annualized EPS of Rs 9.06, by a PE multiple of 15.12.

Bijli Investments, a promoter group company, has increased its stake from 21.98% to 22.31% after acquiring 74,554 shares representing 0.32% of the equity capital of the company from open market in two tranches on 3 November 2009 and 4 November 2009. Increase in stake by promoters in a company helps bolster investor confidence.

Total promoter shareholding in the company is 41.24% (as on 30 September 2009).

PVR's net profit rose 10.4% to Rs 5.21 crore on 4.7% fall in net sales to Rs 78.68 crore in Q2 September 2009 over Q2 September 2008.

PVR is engaged in film production and distribution. It also operates multiplexes under the brand name 'PVR' cinemas.

Promoters have pledged five lakh shares representing 2.17% of the equity capital of the company (as on 30 September 2009