PVR has finally received license to open its Phoenix Mills multiplex (biggest in Mumbai) comprising of seven mainstream digital screens with a seating capacity of 1,847 seats.
The multiplex is owned by CR Retail, a wholly owned subsidiary of PVR, and boasts of 2k digital cinema that is compliant with DCI technology.
With the opening of PVR Phoenix Mill, the total number of PVR screens in operation has gone up to 108 at 26 locations across 14 cities. In Mumbai, PVR now has 24 operational screens.
We had already factored in the opening of the multiplex in Q3FY2009. We believe this event is extremely positive for PVR as the launch of this property was long awaited and would help PVR boost its ATP as it is a premium property.
At the CMP of Rs88, the stock is trading at attractive valuations of 5.2x FY2010E consolidated EPS of Rs16.8 and 0.8x P/BV. We continue to maintain BUY on the stock with a target price of Rs134.