ICICIDirect - Pick of the Week - Prime Focus (Buy: Rs 390, Target: Rs 468)

[Sunil]

Prime Focus (PRIFOC)

Current Price: Rs 390                   Target: Rs 468

Prime Focus, a post-production and visual effects service house, is well
geared to capitalise on the boom in the media and entertainment industry
through geographical expansions. It has forayed into the high-margin visual
effects (VFX) and animation business, and also equipment rental and film
distribution. We believe these initiatives would translate into significant
returns for shareholders.

At the current price of Rs 390, the stock trades at a P/E multiple of 23.73x
its FY07E EPS of 16.43 and 13.89x its FY08E EPS of Rs 28.06, which is well
below the average media industry P/E of 16x. We rate the stock an
OUTPERFORMER with a price target of Rs 468, an upside potential of 20% in
the next 6 months.

Details in report attached.


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