Reviews

PVR

Ticker: 532689
FV: Rs.10 
52-Week H/L: Rs. 1567.50/1064.55

We had recommended PVR to our readers in Volume No 34, Issue No 48 (dated Sept 17, 2018), when the scrip was trading at Rs 1388. Our recommendation was based on factors such as enormous opportunities in the southern region and aggressive expansion plans, coupled with healthy financial performance. In Q2FY19, the company’s revenue was up by 27.7 percent YoY to Rs 709 crore. The EBITDA grew by 34.8 percent YoY and EBITDA margin stood at 17 percent. PAT jumped by 32 percent YoY to Rs 33 crore. The company plans to take its screen count to 1,000 by 2020 from the existing 741 screens. It also plans to expand its scope of movie viewing for the differently-abled. But, as our target price was achieved, we recommended our investors to BOOK PROFIT on Dec. 3, 2018.




PERSISTENT SYSTEMS

Ticker: 533179
FV: Rs.10 
52-Week H/L: Rs. 915/532.80

We had recommended Persistent Systems to our readers in Volume No 34, Issue No 45 (dated Aug 27, 2018), when the scrip was trading at Rs 873. Our recommendation was based on factors such as robust financials. In Q2FY19, the company’s revenue was up by 9.8 percent YoY to Rs 835.6 crore. The revenue growth was missed as per market estimates due to drag in digital services and IP-led business. Its EBITDA for the quarter grew by 24 percent YoY to Rs 143.6 crore and EBITDA margin stood at 17.2 percent. Higher attrition continued due to exit of sales employees at the start of the quarter. PAT was up by 6.7 percent YoY to Rs 88.1 crore. Healthy deals in the pipeline would trigger company’s topline and demand is expected from Q3FY19 onwards. Thus, we urge investors to HOLD the scrip.