A strong movie pipeline is always helpful for the multiplex business. Thankfully, for some time now, content has been good. In fact, for the recently released Ek Tha Tiger, ticket prices were raised 15-25% in anticipation of strong demand. According to a news report in Mint earlier this month, prior to the movie’s release, PVR Ltd, too, raised prices by 15-25% based on geography.

One key reason for the robust revenue growth seen last quarter is because of the strong performance of its movie production and distribution segment. The business performed well due to better-than-expected performance of its last release, Shanghai. The June quarter also saw an improvement in operating profit margin, both sequentially and y-o-y. Reported net profit, however, declined by 51% compared with the same period last year to 7.5 crore. That’s because of a one-time item last year.

Barring that, operationally, the company has performed well on many metrics in the last quarter. What’s also notable is that the PVR stock has performed well and delivered good returns to shareholders in the last one year.

While the outlook seems bright, the hitch is that valuations already seem to be reflecting most of the positives. At 181, the stock trades at 13 times its estimated earnings for the current fiscal. Near-term upsides appear limited.

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