Stock Recommendations For Your Portfolio

Engineers India | BSE CODE: 517326 | Volume: 18858 | CMP: Rs 159

The financial performance of the company on a quarterly basis may not make it look like a great investment bet to take. Further being a PSU, not many would like take an exposure to the counter. But as they say, stock markets work on anticipation and hence we need to look forward. We are of the opinion that with the investment cycle expected to revive soon, one can expect the order book to witness a good growth. Apart from that, the scrip is also looking good on the valuation front. It is currently trading at 9.50x. The stock has witnessed higher volumes in the past few trading sessions indicating towards an increased interest in the counter. The high risk taking investors can take exposure to scrip at current levels for making some smart profits in the near term.

PVR | BSE CODE: 5532689 | Volume: 4832 | CMP: Rs 572

The consolidation of the Indian film exhibition industry has gone well for PVR. Its position consolidated further when it acquired 93 per cent stake in Cinemax India in January 2013. Post acquisition the company now operates 402 screens spread across 93 cinemas covering 38 cities in India. PVR is a dominant leader with a box office collection share of 30-35 per cent for Hollywood movies and 20-25 per cent for Bollywood movies in India. The consolidation has also helped the company to crack better deals with distributors which in turn has led to higher revenues. The presence in the premium segment also adds another advantage to the company which is that the company can pass on the price hikes to customers with a constantly increasing average ticket price that was around Rs 160 last fiscal and is expected to reach Rs 170 by the end of this fiscal. It is also expected that the advertising revenue of the company is likely to grow by 25 per cent on a yearly basis for this fiscal which will also be value accretive. One can look at the stock from a medium term perspective.