SP Tulsian of sptulsian.com told CNBC-TV18, "People have not understood the fundamentals and the intrinsic worth of Cineline India. Now that the company has acquired 50,000 square feet carpet area in Andheri, Marol from one of the group companies for Rs 148 crore, that translates into per square feet rate of Rs 29,000.""The core business was originally real estate i.e. multiplexes as well as the exhibition business. They have sold their exhibition business to PVR and now Cineline India is holding nine multiplexes with locations at Sion, Goregaon, Andheri, Kandivali, Mira Road and Navi Mumbai and all these properties are owned by the company. The company has a market cap of Rs 52 crore and if you add the loan of Rs 58 crore then the enterprise value is Rs 110 crore. If you take this valuation, all nine multiplexes have been leased out to PVR on which they earn rental income. So, there is no point in going by the earning potential or maybe seeing this one. It is quite a liquid stock, in fact it is listed on NSE and BSE. You can easily see the volume of about 10,000 shares on a daily basis," he said."The enterprise value of the existing business which is at Rs 110 crore, if you take the net present value of all these properties, I won't be surprised to see it moving beyond Rs 1,000 crore. So, what my point is that this addition of this property will extend their commercial rental business. Apart from that the company is also owning the shopping complex in Nagpur which is leased out to the extent of 98 percent."He further said, "This purchase of the property will accelerate the leasing activity of the company but the existing potential is not even reflected to the extent of 10 percent. As a matter of disclosure, we have been recommending this stock to our client. I have my personal holding as well as we have advised to our clients. So, this kind of potential is seen in this stock. So, maybe I won't be surprised to see this stock becoming five bagger or ten bagger in next two to three years."
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