Know why PVR's stocks are enjoying their showtime

Shares of cinema chain PVR Ltd soared nearly 6 percent in late morning trade after global brokerage CLSA gave a bullish report on the company, with a share price target of 950 rupees.

PVR rose 38.75 rupees to 720.40 on the National Stock Exchange with nearly 195,000 shares changing hands in the first two hours of trade compared with a 5-day daily average of 55,000 shares.

PVR is likely to report stellar earnings this quarter primarily on the back of rising box office receipts. Its first quarter PAT is likely to rocket to 19.3 crore rupees compared with 7.7 crore rupees in the same quarter a year ago. PVR's sales are expected to hit `435 crores in the April-June quarter, up 20 percent on year.

PVR enjoys a market capitalisation of close to 3,000 crore rupees and the stock has appreciated 12 percent over last one month.

(Image credit: Indiatimes)