INOX FOR 2 TO 3 YEAR PERSPECTIVE LOOKING GOOD FOR INVESTMENT. THR COMPANY SHOULD GROW 50% IN YEARS TO COME. From the current around 40 screens across 11 multiplexes, the company IS on an expansion plan to set up a total of 100 screens across 25 multiplexes.looking at aggresive plans & good concept I think its a good buy.

Yes Anand, Inox is a great concept. Come to think of it with increasing disposable income and changing lifestyles with favorable demographics these companies have very stable business models They act as anchor tenants and drive traffic into a mall so they enjoy the benefits of lower rentals also. Inox has tied up with Pantaloon Retail for opening up centers in all the new malls that the latter develops. A friend of mine recently visited Darjeeling and he conveyed that the shows were going House Full!  Inox is expanding its multiplex chain. Very soon Inox shall merge its operations with Calcutta Cinema Pvt Ltd (popularly known as Cinema 89.) This will give Inox a substantial presence in eatern India.. India is underscreened with only 12 screens per million populations. (CII-KPMG Report).There is scope for a ten times growth to this number. It is estimated that Inox shall increase the number of screens  from the current 41screens across 11 multiplexes to a total of 100 screens across 24 multiplexes.Revenues could grow at more then 60% for the next 2 years from Rs.102 crores in FY06 to Rs 162cr in FY07 and Rs260 crores in FY08.Presently ticketing revenues account for about 70% of its total revenues while the other heads like food, beverages, car parking make up the other 30%. The company has been aggressive in increasing ticket prices so enjoys superb pricing power. All new properties to be set up by the company will be on a long term lease basis as against the 50:50 break up of leased and owned properties in FY06. While this could  increase rental expenses there would be a reduction in interest, depreciationand also increase the free cash flow potential of the company. Getting into a lease mode is always important because in case  a property does not work out the tenant can immediately vacate the area and start at a new place,. On the other hand if you own a property it makes it a bit more difficult for you to move around. Also in cae of owed properties the balance sheet will look more like a real estate company rather the entertainment business. In Fy7 Inox should do an Eps of Rs 6 which should further increase to Rs 9 by Fy 08. At a current market price of Rs125 the potential growth for long term investors is very high. Inox’s strategy to tie up with pantaloons shall give it huge power in terms of attracting traffic to their multiplexes. This is so because departmental stores and multiplexes are the two main areas that attract crowd to shopping malls.

Inox is also a great case for the Peter Lynch fan. Other Peter Lynch concepts can be accessed by clicking on the following link.

Absolutely over a period of time it would hardly matter whether we are watching a movie at Inox or PVR as long as we are interested in the movie that we watch. However as you mentioned good solid locations that can attract traffic (read crowd) would do well then the others. The two things that drive traffic to a mall are departmental stores and multiplex. here I feel that Inox's strategy to align with Pantaloon would complement both parties.

Also the commoditization of business could take a bit longer since initially we would have to fill in the voids that are being created by changing consumer preferences. So at least for the next two years there should not be much of a problem but finally since they are only broadcasters of content and not creators their PE ratio will not reflect that of a high brand company.

INOX/PVR is a steal at these prices. Trading close to book values. Almost no debt. Excellent management, Excellent business.

Both PVR and INOX are available at the same valuations.....

I think both are good holds for long term...but we can get a lower price if we wait a bit more.....

Though PVR has more sales than Inox....and also more profit than Inox....but only marginally more than INOX....

May 19 (Bloomberg) -- Twentieth Century Fox had almost as much success in India with a Hindi film that had no special effects as with http://search.bloomberg.com/search?q=James+Cameron&site=wnews&client=wnews&proxystylesheet=wnews&output=xml_no_dtd&ie=UTF-8&oe=UTF-8&filter=p&getfields=wnnis&sort=date:D:S:d1 -

Originally posted by valuepicks Originally posted by subu76 Very Good analysis....falling margins and if i remember falling money/seat was a big paint point for me too when i looked at this one. Just can't understand why they are not getting the advantages of scale Just posted a comment on EROS Int forum too..   If producing movies is like digging gold; distribution is like carrying forward good-bad-ugly (mostly ugly) and exhibition is capital intensive, who is actually making money in this evergreen and big world of cinema?? Actors alone?? I wish SRK was available as a listed company!   The problem, looks like, is in making movies. Thanks to the culture of multiplexes, now we have multiplex-movie-making... i.e., movies with far lesser shelf life.... Are producers really happy with a movie with shelf life of 2-4 weeks? Where have the days of sholay (shelf life of 3-4 years!) gone??

absolutely correct

can we compare inox vs cinemax on fundamental base apart from size which one is better?