Risk factor
Very poor trading liquidity
Profitability factor
Weak margins and returns
About
Headquartered in Mumbai, India, Cineline India Limited (established in 2002 and formerly known as Cinemax Properties Limited until its 2013 rebranding) is a real estate and infrastructure company with operations spanning across the country. Its primary business revolves around the ownership and leasing of various properties, generating income from renting commercial and retail spaces, as well as providing parking and advertising opportunities within prominent shopping centers. The company boasts a significant real estate portfolio, including nine theaters—seven located in the Mumbai metropolitan area, and one each in Nasik and Nagpur—all currently leased to PVR Cinemas. Additionally, Cineline India owns the Eternity Mall in Nagpur and two commercial properties situated in Mumbai, while also offering maintenance services for its assets. Diversifying its operations, the company further engages in renewable energy generation, managing a 1.65 MWA windmill in Revangaon, Maharashtra, and a 0.60 MWA windmill in Viswada, Gujarat.
Company Valuation
Based on key historical and expected multiples, the stock is fairly valued relative to its peers. Specifically, the stock is fairly valued on P/E, undervalued on EV/EBITD