Cinemax India can move to Rs 196-198, says SP Tulsian

Cinemax India can move to Rs 196-198 and PVR may slip to Rs 203, says SP Tulsian, sptulsian.com.

Tulsian told CNBC-TV18, “I don’t think that GMR Infra can really fall below Rs 16 because the kind of corrections which we have seen, definitely the Male airport has been a priced asset for the company. But that will not be because most of negatives has been factored in the price so maybe a fall of Re 1 to Rs 1.50 from hereon and again we may see the renewed buying coming back at those levels. That has been generally seen the strong support for the stocks at Rs 16-16.50.”
He further added, “The promoters of Cinemax have been able to extract very good valuations. In fact I will take this as a negative for PVR because they have paid. I don’t know what the desperation on their part was because I have been taking a call that the deal should happen anywhere between Rs 180 to Rs 190. So maybe some element of the deal has been valued 10 percent more so maybe positive for Cinemax. There will be open offer and under the open offer all the shares will get accepted, positive for Cinemax. Maybe the upside from hereon make the share to move to about Rs 196 to Rs 198, since the deal has happened at Rs 203 PVR can slip further from hereon by maybe about 3 to 5 percent more from here.”
"I won’t be keeping my positive stance on PVR because if I presume that entire amount will be raised by the company via debts and if you add the open offer also it will be, the interest burden of about Rs 60-65 crore. Eventually if you take a call on Cinemax it will eventually get merger with PVR because 69 percent from promoter and 26 percent under open offer will give them 95 percent and under this open offer Sebi will not allow to go for de-listing along with open offer because they have to give an undertaking that in the next six months they will dilute the stake to 75 percent which they won’t be comfortable and agreeing for that. So eventually, we will be seeing the merger of Cinemax happening in. So taking this scenario going forward I don’t see, I am not convinced with this kind of up move in PVR and I am not convinced about this rally in PVR."