We summarize to you the IPO Recommendations of
UFO Moviez India Ltd from various researched in the Indian Equity Market
ICICI Direct Analysts Karan Mittal and Sneha Aggarwal have the following Recommendation,
Advertisement revenues that are highly margin accretive, have grown ~10x in the past four years and are expected to grow further. Though the P/E multiple of ~34x FY14 EPS may appear expensive, it is in line with other consumption driven stocks. However, in the long term there is a looming risk of vertical integration by exhibitors and hence we recommend SUBSCRIBE for listing gains.
Choice Broking Analysts Sumeet bagadia and Rajnath Yadav have the following view,
UFO is the market leader in the digital cinema screens in India with a market share of 54%. Moreover, the company has delivered more than 90% of the movies released in India during FY13 and FY14. We anticipate that, UFO will continue to expand its market share with its pan-India presence and after sales network across the nation. At upper price band, the company’s share are available at P/E of 37.3x, which is at 22%-23% discount to average P/E multiple of peers. Thus we recommend investors to subscribe for the IPO.
Gupta Equities Analysts Omkar Tanksale and Dhiral Shah have the following reco,
UFO Moviez India Ltd. (UFO) is available at the IPO price band of 615 to 625 which is available at 37x P/E multiple. We believe that this valuation looks cheaper. So we recommend SUBSCRIBE to this IPO. (for long term)
Reliance Securities Analyst Chitrangda Kapur has the following views,
UFO Moviez at upper price band of Rs625 will trade at P/E of 34x FY15E (annualized) EPS of Rs18.5, which is reasonable (based on business models) in comon to P/E of 18x FY15E EPS of Rs26 for Eros International (one of the largest studios in India) and P/E of 49x FY15E EPS of Rs12.5 for PVR (the largest exhibitor chain in India). We recommend SUBSCRIBE to the issue with a long-term investment objective.
Angel Broking analyst Amarjeet Maurya has the following view,
On the EV/EBITDA front, the company is valued at 10.1x (at the upper end of the price band) and on PE front the company is valued at 32.9x (at the upper end of the price band) on the basis of 9MFY2015 annualized numbers. Considering future growth potential, we recommend a Subscribe on the issue for listing gains as well as for accruing handsome rewards from a long term investment.
