Reduce Fame India, target of Rs 17: Angel

"For 4QFY2009, Fame reported a robust Top-line growth of 33% yoy to Rs 23.2 crore (Rs 17.4 crore) on a standalone basis. Fame declared a Bottomline of Rs 6.2 crore (Rs 0.4 crore loss), on a reported basis, largely due to the reversal of a MTM loss (Rs 9.1 crore), adjusted for which the company reported a loss of Rs 2.9 crore (Rs 0.3 crore profit) for the quarter."

"During FY2009-11E, we expect Fame to register a robust 25.6% CAGR in its Top-line, driven mainly by addition in seating capacity, as we expect the ATP and F&B Spend to improve only marginally. We expect the screen count to increase, from the current 74, to 95 screens in FY2010 and 116 screens in FY2011. We downgrade the stock from Neutral to Reduce with a Target Price of Rs 17," says Angel Broking's research report.

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