Friday, 28 July 2017

Buy Cineline India: SP Tulsian

Q: You are recommending a stock called Cineline India; tell us about the company and why you like it?

A: This company belongs to Kanakia Group and they are the leading real estate developer in Mumbai. In fact you see many of their projects, commercial and residential, and some of them are in the high-end also. This company, promoters are Kanakia Group and the company owns nine multiplexes and all those nine multiplexes have been leased out to PVR on which regular rental income is earned by the company along with the other parking charges and all those things are accruing to the company.


Now those nine multiplexes are situated or located in the prime location of Mumbai, maybe Eastern and Western suburbs like Andheri, Sion, Goregaon, Kandivali, Thane, or Navi Mumbai. Many of these properties are seen to be of depleting condition which may require redevelopment and all that, and that is what we have gathered that even if out of nine properties, even if they take couple of properties for development, that can give them huge value unlocking going forward.

Apart from that, the company is also owning Nagpur Eternity Mall; that is a mall in Nagpur which is 90 percent occupied and the company has given the statement that they intend to monetise this property. The net present value is seen anywhere at about Rs 200 crore. Just to retire the debt which the company has in its book.

Thirdly, company has booked about 84,000 square feet of sellable area or 50,000 square feet of carpet area in the new Kanakia project coming up that is called Kanakia Wall Street at Andheri East. The company intends to lease that out also because Kanakia Wall Street is a themed commercial space where the financial intermediaries, brokers, merchant bankers, and this property is developed on the theme of a Wall Street where the development work which is going on and will get completed in next one year.

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