Portfolio Guide - Pyramid Saimira (BSE code 532791)
December 14th, 2008 by admin | No Comments | Filed in BSE, short termPyramid Saimira (BSE code 532791) is currently trading at Rs 42.55 (52-week high/low Rs 551.00/39.60). It is one of the largest film exhibition companies in Asia. The Company’s topline stood at Rs 743.89 crore (Rs 164.32 crore) for FY08, recording a mammoth YoY growth of 352.71 per cent. For the same period the bottomline stood at Rs 57.87 crore (Rs 13.43 crore), posting a YoY growth of 330.90 per cent. The company’s top-line stood at Rs 502.67 crore (Rs 266.91 crore) for H1FYO9, posting a YoY growth of 88.33 per cent and the bqttomline stood at Rs 22.20 crore (Rs 31.12 crore), a decline of 28.66 per cent. The main reason behind such a decline in the bottomline is the rise in the operarecia- tional expenses and the interest expenses that stood at Rs 463.65 crore and Rs 10.95 crore and increased YoY by 105.66 per
cent and 495.11 per cent respectively. The Company is t modernize 250 screens in South India and plans to invest Rs 200 crores towards renovation in the next 18 months. It was rumoured that Pyramid Saimira is set to buy UK’S Reel Cinemas.
However, it later clarified that till date the discussions are in a primitive stage and the Company’s Chairman and MD had made a futuristic statement. The counter is currently available at a P/E of 2.46x of its trailing 12-month earnings and a P/BV of 0.72x. PSTL stock previously commanded a premium due to the new concept it bought into the market. The management
is very aggressively pursuing growth abroad apart from the country. The mute question is whether it will be able to manage such a huge expansion. This has led to increased risk, resulting in the counter taking a beating on the bourses despite growth.
We would suggest you to stay invested as the counter may give good’ recovery once the market stabilizes.
Tags: Pyramid Saimira (BSE code 532791), short term ideas, short term investment, stock investing, stock investment, stock market advice, stock market research



