PRIME FOCUS LTD; FOR BRAVEHEARTS ONLY

 
                               CMP 59                 BSE 17233

Today's Call is a trifle offbeat, a 'concept stock', if you will, but which nevertheless looks promising.

• On the TECHNICALS, upside resistances are seen at 62 followed by 66 and then a bigger one at 73 levels.
• On the downside, supports are available at 56 followed by 52. If 52 is broken on a closing basis, then the Stock could go down all the way to 44 levels. But worry not folks, as long as the Scrip closes above 56 levels, the short to medium term trend seems very positive.
• On the FUNDAMENTALS, the Company is a spiffy Communications content services provider active in the areas of Feature Film special effects and 3D Conversion, Post Production & Creative Services as well as turn-key production, processing, management and delivery of Content using latest innovative tech. platforms. It has, in conjunction with Steven Spielbergs' ILM, worked on the forthcoming 3D theaterical release of Star Wars.The list of its 'visual content association' with Hollywood blockbusters is endless and in the case of Bollywood, the name that comes immediately to mind is the SFX for RA-ONE etc.
• As far as the Financials are concerned, they seem pretty good, a tad stretched on valuations perhaps, but that is par for the course. The Company could do a Consolidated EPS of 7 to 8 in FY2012 thus putting it at about 8x FY12E at CMP 59. But the real kicker could come in FY13 with its 'Clear Content' tech. platform in greater fruition.

The Stock, in my opinion, rates a BUY at CMP 59 for those wanting to look beyond the obvious and brave enough to ride possible Price volatility. We could be looking at a target of 75 approx in the next 6-12 months or even earlier.