PVR : RECOMMENDING AGAIN !!

PVR LTD .

Currently closed at 640 level .... Buy this Script and accumulate it for medium term !!! With Targets of 750 - 830+ level !!

WHY PVR ::

To offer multiple choices under one roof
Multiplex chain PVR Cinemas is set to launch a new concept called PVR Superplex, which will have 15 screens or more under one roof offering a range of formats. The company has already tied up with real estate developer Logix Group for the first Superplex, which is slated to open in Noida in the next couple of months.

From latest technology offerings such as IMAX and 3D and 4K (ultra high-definition) digital experience, to specially designed seats, menu and interiors for children and senior citizens, the company is looking to drive up occupancies.

%u201CAt a time when consumers have latest technology-equipped home theatres and devices, the big challenge for the multiplex industry is how to increase the frequency of visitations as well as offer different kind of experiences that attract all age groups. This led us to look at offering a variety of formats under sub-brands,%u201D said Pramod Arora, Group President, PVR Ltd.

At a time when multiplex players are signing up megaplexes that house more than 10 screens at a single location, the big challenge is differentiation. %u201CWhile megaplexes will have 15 screens or more under one roof, at the end of the day, the content will be the same. PVR Superplex is our endeavour to offer multiple experiences under one roof,%u201D he added.

For instance, under sub-brand PVR Playhouse, the multiplex chain wants to woo children aged 5-9 years by offering them play seats, bean bags, cartoon character-themed interiors besides a special menu. While PVR 4DX will offer motion seats that move in sync with on-screen action besides special effects, PVR ECX offers immersive viewing experience with 3D and 4K digital projectors. Besides, the multiplex will also be running shows at special times for senior citizens, offering special menu and other facilities.

Arora said PVR had signed two additional agreements to expand PVR Superplex to other locations besides Noida. Depending on the availability of malls and consumer response, the company%u2019s long-term plan is to open two such megaplexes in each State.

%u201CWe will invest about %u20B950 crore on this 15-screen megaplex concept. The next one is expected to be even bigger with 20 screens in Bangalore. We will focus on garnering higher volumes and price tickets looking at what the consumer%u2019s are willing to pay. We also see potential in launching PVR Superplex in smaller cities,%u201D he added.

Meanwhile, the company expects to add 100 screens a year in the next two-three years and expects to hit the 1,000-screen mark by 2018-19. It is also open to inorganic growth opportunities.

On the performance this year so far, Arora said: %u201CContent is the defining factor and unlike retail chains and malls, multiplexes do not get impacted as long as the content line-up is strong. Though the first quarter was weak, the content line-up for the next two quarters is very strong.%u201D