#mystockpitch
SELL
1)Declining Premium Pricing Ability-increasing competition in tier 2/3 cities.Lower ATPs to limit pricing ability
Beyond Top 15 Cities Presence PVR-15
Carnival-84
Inox-50
2)Infra Risk
Slow Development of Malls and Multiplexes
Average delay of 3-6mths on upcoming properties
Regulatory lags of license to operate Multiplexes
top 7 cities-only 20% of operational malls are performing well
3)Technology Risk
OTT, DTH,IPTV,home video are threat to industry.owing to lockdown necessity of OTT might become luxury
4)Content Risk
Flow quality of releases are important.Poor content in 2017 had brought down margin considerably.
5)Inorganic Growth Risk
reduced scope to acquire.Top 4 players control 70% of Multiplex landscape.acquiring single screen not considered by management
6)Regulatory Risk
South States have upper cap on ticket prices,Chandigarh follows fixed pricing system.impacts revenue
7)Low Promoter holding 17%, poor ROE ROCE and NPM, PB at 7.stretched valuations