Flash News Investment - - RECOMMENDATIONS -

We had rec­om­mended PVR Ltd in vol­ume no. 33, is­sue no. 24 (dated April 3, 2017) when the scrip was trad­ing at Rs 1457. Our rec­om­men­da­tion was backed by its strong per­for­mance in FY16 and ex­ten­sive ex­pan­sion. On a con­sol­i­dated ba­sis, the com­pany's rev­enue grew 13.15 per cent YoY in Q1FY18. Its EBITDA grew 7.7 per cent, but the mar­gin de­clined from 18.5 per cent to 17.6 per cent YoY. IThe com­pany's net profit in­creased marginally by 3.8 per cent. How­ever, the men­ace of piracy and de­creas­ing num­ber of con­sumers vis­it­ing the­atres are some of the is­sues which are af­fect­ing the busi­ness of en­ter­tain­ment in­dus­try. The GST rate on movie tick­ets is 28 per cent and this will have mixed ef­fects on the com­pany, depend­ing on the state. We do not see much up­side in the stock and hence we rec­om­mend our in­vestors to EXIT the scrip.

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