PVR: Buy
Bringing in more audience. K. Venkatasubramanian Investors with a two-year horizon can consider buying the shares of PVR, a leading multiplex operator, given the revival in the movie exhibition business, increasing average ticket price as well as occupancies. A broad-based revival in the economy, a slew of movie releases that held/hold promise and increasing consumer spends which could help augment earnings, with higher food and beverages sales, also underscore our recommendation. At Rs 173, the share trades at 13 times its likely FY-12 earnings. That is lower than its peer Inox Leisure as well as its own historic valuation levels, which also makes it an attractive bet. The multiplex industry had an extremely challenging FY-10, what with their standoff with distributors over revenue-sharing and a string of unsuccessful movies. Almost the entire first quarter of last fiscal went without any movie releases as a result of the tiff with distributors. A recovering economy