EXIT: PVR Cinema, Educomp Solutions, Jagran Prakashan.
PVR Cinema – the largest multiplex cinema operator by number of screens in India is grossly overvalued. The stock is trying to bank on the retail-lifestyle bandwagon. The Q1 results are not supporting the rich valuations it enjoys. Q1,2006 showed marginal increase in the EPS on the diluted equity Q-O-Q. High real estate prices, lower margins in film exhibition business act as dampener to the growth in EPS in near future. Also possibility of further dilution in equity adds to this. At a PE multiple of 78 it is a perfect sale.
Educamp Solutions is being rigged up in last few weeks. The company does not enjoy any good track record. At Rs.530, the stock is quoting at a price earning multiple of 60. This is not sustainable in the near future. The stock is expected to fall in the coming weeks. Advise exit this counter at the earliest possible.
Jagran Prakashan, a Hindi newspaper is riding the media wave in the market. Though the company has made some new announcements, the kind of valuation it is enjoying is absurd. At Rs.310, the stock is quoting at a PE multiple of 40. Rising input prices, falling operating margins are expected to take the toll and drag the stock prices down. Another Mid-day Multimedia in making. A stock worth selling.
PVR Cinema – the largest multiplex cinema operator by number of screens in India is grossly overvalued. The stock is trying to bank on the retail-lifestyle bandwagon. The Q1 results are not supporting the rich valuations it enjoys. Q1,2006 showed marginal increase in the EPS on the diluted equity Q-O-Q. High real estate prices, lower margins in film exhibition business act as dampener to the growth in EPS in near future. Also possibility of further dilution in equity adds to this. At a PE multiple of 78 it is a perfect sale.
Educamp Solutions is being rigged up in last few weeks. The company does not enjoy any good track record. At Rs.530, the stock is quoting at a price earning multiple of 60. This is not sustainable in the near future. The stock is expected to fall in the coming weeks. Advise exit this counter at the earliest possible.
Jagran Prakashan, a Hindi newspaper is riding the media wave in the market. Though the company has made some new announcements, the kind of valuation it is enjoying is absurd. At Rs.310, the stock is quoting at a PE multiple of 40. Rising input prices, falling operating margins are expected to take the toll and drag the stock prices down. Another Mid-day Multimedia in making. A stock worth selling.
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