Thursday, August 30, 2007
Another Gem : SHRINGAR CINEMAS
SHRINGAR CINEMAS is an excellent pick in the media sector. The Promoters holding is 48.06% qtr ending June, 2007. The EPS for June qtr was rs. 1.65 as compared to 40 paise last year. At a projected eps of rs. 6 for fiscal 2007-2008, the share trades at a PE of approx. 9. This is very low as compared to other media stocks. If the stock is brought near the PE levels of its peers, the fair value should be around rs.90. The company is adding new properties to its kitty of Multiplexes and the growth for this company's business is expected to be good. Technically, once this stock closes above 62 with good volumes, it could then go up to the next level of 75.