Fundamentals

PVR LIMITED

Ticker: 532689 BUY: Rs.1387.60
Target: Rs.1530

PVR Limited is the largest cinema exhibition company in India with 643 screens across 54 cities. PVR has recently acquired 71.6% stake in SPI Cinemas to capture the southern region. PVR has signed non-binding MoU with Dubai based Al-Futtaim group for jointly developing the cinema business in the MENA region. The company is aggressively working on the opening of 90 screens in FY19. On the financial front, the consolidated revenue was Rs 696 crore, an increase of 9.4% YoY and operating profit also increased by 22.5% YoY to Rs 137 crore. Also, the net profit stood at Rs 52 crore, up by 18% YoY. It has posted healthy growth in its profit at 23.06% CAGR over the last five years. Considering the enormous opportunities in the southern region and aggressive expansion plans, coupled with healthy financial performance, we recommend it as a BUY.




INDIAN ENERGY EXCHANGE (IEX)

Ticker: 540750 BUY: Rs.1703.65
Target: Rs.1850

Indian Energy Exchange (IEX) provides electronic trading platform for trading of electricity products which include electricity contracts in blocks of 15 minutes in the dayahead- market (DAM). In the Indian power market, short term electricity market comprises 10.3% of the total electricity generated. As per CRIS, the short-term electricity market is expected to grow to 21.1% of the electricity generated by 2022, out of which 43% is expected to be traded on the exchange. On the financial front, the company's revenue, EBITDA and PAT for Q1FY19 came in at Rs. 67 crore, Rs. 61.7 crore, Rs. 41.9 crore, respectively. The company has higher than normal EBITDA margins at ~83%. The volume of electricity traded in Q1FY19 was 14.43 billion units. Considering the huge growth potential and the strong financial performance, we recommend it as a BUY.