Cinemax

 Cinemax

Cinemax India

Cinemax India

Cinemax India

For multiplex operators such as Cinemax, a reviving economy has meant higher footfalls, increase in ticket prices and higher spending by the cinema audience on food and beverages, all aiding the company's earnings. Investors with a one-two year horizon can buy the shares of Cinemax India.

Cinemax India

Cinemax India

Annual Report - Cinemax India - 2009-2010

CINEMAX INDIA LIMITED

ANNUAL REPORT 2009-2010

DIRECTOR'S REPORT

To
The Members of
Cinemax India Limited

Your Directors are pleased to present the Eighth Annual Report, to the
members, on the business and operations of your Company together with
Audited Accounts for the financial year ended 31 March, 2010.

Cinemax India

Cinemax India

Cinemax

Cinemax

Cinemax India

Investors with medium-term perspective can consider buying the stock of Cinemax India (Rs 76).

The company operates one of the largest exhibition theatre chains in India with 25 properties with 74 screens. The stock's downtrend since its listing in February 2007 was arrested at the March 2009 low of Rs 24.3. Both medium- and short-term trends are up for the stock.

However, recently it encountered resistance at Rs 80 and is currently pausing at this level. The medium- term uptrend is likely to accelerate once this level is crossed. The stock is trading well above the 21- and 50-day moving averages.

The daily and weekly relative strength indices are featuring in the bullish zone, reinforcing the medium-term bullish momentum.

Besides, the daily as well as weekly moving average convergence and divergence indicators are steadily rising in the positive territory. Taking into consideration that the intermediate-term uptrend line is in tact for the stock, we are bullish from a medium-term horizon.

We believe that the stock has the prospect of trending higher until it knocks our medium-term price target of Rs 100, with minor pause at around Rs 86. Investors can make use of dips to accumulate the stock while maintaining Rs 64 as medium-term stop-loss.

Follow up – Jyoti Structures (Rs 195.1)

The stock has gained Rs 11 from our recommend price level last week and is heading towards our short-term price target. We maintain our bullish short- and medium-term outlook for the stock. Investors can buy this stock with the targets and stop-loss indicated in the preceding week.

via BL

Cinemax India

Investors with a two-year horizon can buy the shares of Cinemax India, considering that the worst may be over for the company and the multiplex industry, with a string of releases charted for the next few months, steep increases in footfalls, and occupancies and increases in food and beverage revenues.

At Rs 50.50, the stock trades at about 14 times its expected 2009-10 earnings and 11 times its next year's estimates; on very conservative assumptions. This is at a discount to Fame India, despite the company's larger scale of operation.

The past two-three quarters were exceptionally challenging for multiplexes with the Mumbai terror attacks reducing footfalls and occupancies, the IPL-2 keeping audience glued to the small screen and the standoff with distributors over quantum of revenue sharing, delaying fresh releases.

For the June quarter, the company's revenues fell by over 18 per cent over June 2008 to Rs 25.3 crore, while EBITDA fell by 88 per cent to Rs 0.53 crore.

Many other multiplex operators incurred losses even at the EBITDA-level.

But with these one-off challenges behind it, the prospects of improvements over the next few months are bright. Recent reports suggest that in July, after the multiplex-distributor tussle ended, there has been a doubling of monthly box-office earnings.

Cinemax, which has 74 screens across 24 locations and many in the lucrative Mumbai market, has benefited from recent releases. Multiplex players have benefited from the large draw such movies as New York, Kambakt Ishq and Love Aaj Kal have had. Over 50 movie releases are expected over the next two quarters (that were held back due to the tussle), starring some big names in Bollywood.

Some big-ticket ones such as Kaminey, 3 Idiots, London Dreams, and Kites are expected to set the box-office ringing. Surprisingly, even English movies such as Terminator Salvation and The Hangover are reportedly running at 60-70 per cent occupancy.

Cinemax has seen its average ticket price decline to Rs 114 in the June quarter from the Rs 125 levels earlier. But the average spends on food and beverages have witnessed an increase to Rs 31 from Rs 29. As occupancies increase to 25 per cent plus levels on the back of higher footfalls and hit movies, the ticket price is set to increase.

The company, despite the slump in the June quarter, hopes to achieve an EBITDA margin of 25 per cent for the full year and an occupancy level of 25-27 per cent.

via BL

Cinemax India

Cinemax India

Balrampur Chini, Bharati Shipyard, Bombay Rayon, Cinemax

Balrampur Chini, Bharati Shipyard, Bombay Rayon, Cinemax

Cinemax India

Cinemax India

IT Services, Ratnamani Metals, Cinemax TRF

IT Services, Ratnamani Metals, Cinemax TRF

Cinemax India

Cinemax India

Cinemax India

Cinemax India

Cinemax India

Cinemax India

Cinemax, Bartronics, Panacea Biotec, CESC

Cinemax, Bartronics, Panacea Biotec, CESC

Morning Notes, Cinemax

Morning Notes, Cinemax

Cinemax

A dominant position in Mumbai and on-track expansion across the country gives Cinemax an edge over others. Over the past few weeks, the stock markets are reverting to the great Indian growth saga and those companies and sectors which are driven by the growth in domestic consumption are back in the limelight.

As disposable incomes rise in the deep pockets of the country, the resulting spending spree is envisaged to be an unparalleled opportunity for sectors such as consumer goods, apparels, leisure and lifestyle. Among others, the multiplex players too are investing big bucks across the country to reap the resulting riches.

Players like Adlabs, Cinemax India, Inox Leisure and PVR Cinemas – all are racing to gain presence town and country. Cinemax India, which raised around Rs 138 crore via an initial public offering in order to expand its footprint out of Mumbai, appears to be well on track. A part of the Kanakia real estate group, the company is among the large multiplex operators with 39 screens and over 11,000 seats at 13 locations across Mumbai, Thane, Nashik, Himmatnagar (Gujarat) and Guwahati.

Mumbai magic

Mumbai is the largest contributing market to box-office revenues of movies in India, accounting for over 15 per cent box-office collections of all the Bollywood movies released. Cinemax is the largest operator in this regional market, as it has a majority of its operations concentrated in and around Mumbai and hence, stands to gain the most from its continuing demand. Of the total 39 screens, 31 are housed at 10 locations in Mumbai, Thane and Mira Road. Twenty-eight of the 31 screens are multiplex properties, spread across an area of over 155,000 square feet.

Beyond Mumbai, the company has plans to expand its reach in the northern and eastern parts of the nation.

Realty blues?

Over the past 12-18 months, real estate prices across the country have zoomed out of the roof. The rise in real estate prices caused concerns of cost overruns of the rapid expansion plans of multiplex companies. “We have already signed up our properties for expansion well in advance,” claims Rasesh Kanakia, chairman, Cinemax. “Even though the overall property rates have gone up by about 10-25 per cent across different locations, we gain from a lag effect in the rates, from the time we sign up a property until the time a multiplex is launched. In addition, being an anchor tenant in a property, we can benefit from preferential rentals offered in the form of prime mover discounts, which ranges between 50-60 per cent,” adds Jitendra Mehta, chief financial officer, Cinemax. “So far, we have already signed up properties for 425 screens, which are expected to be up and running by FY11,” he adds.

Numerically strong

Over the past year, Cinemax has witnessed average ticket prices (ATPs) rising by nearly 19 per cent from Rs 105 in FY06 to Rs 125 over FY07. The average spend on food and beverages increased from Rs 21 to Rs 26 over the two fiscals. As a result, the average spending per head rose almost 20 per cent in a year. “We expect the ATPs to rise by about 15 per cent over the next year,” says Mehta. Further, footfalls too, are on a rise. For Q1 FY08, the footfalls increased by 7.1 per cent to 1.5 million over previous corresponding period. However, the average occupancy levels dipped during the quarter from 35 per cent over the same period last fiscal to 30-31 per cent. In defence, Mehta says: “During the first quarter this year, there were hardly any blockbuster releases. Further, with a greater number of Hollywood releases, the number of shows per day has gone up to five. If we calculate the occupancy rates in the traditional manner, considering the average number of shows to be four a day, the occupancy has actually risen.”

Cinemax has come up with the innovative Red Lounge, which is a theatre with reclining seats and massage chairs, clocking an ATP of almost Rs 450. At present, there are two operational Red Lounges in Versova and Bandra in Mumbai. Now, the company plans to install one or two rows of reclining seats in each of its multiplexes, across all properties in order to boost its top line growth as well as profitability.

Valuation

At present, the Cinemax stock trades at Rs 136 which is nearly 19 times estimated FY08 earnings, and around 14 times estimated FY09 earnings (See table: Running full house). With the demand going strong for all the multiplex players, and Cinemax’s execution of expansion well exceeding its plans, the company is on a good footing. The dominant position of the company in the Mumbai region gives it an edge over its peers such as PVR Cinemas and Inox Leisure, which trade almost at similar or slightly higher price-earnings multiples. While the global markets are in turmoil, Cinemax appears to be a good bet considering that the sector is entirely dependent on domestic demand and the widening middle class of the country

Cinemax, Parsvnath Developers, PNB, Mahindra and Mahindra

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