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D-Box Technologies could make a splash in Bollywood, Echelon says

“The Accidental Prime Minister” is one of the biggest Bollywood films in current release
A new deal to bring D-Box’s (D-Box Stock Quote, Chart TSX:DBO) theatre technology to India is getting the thumbs up from Echelon Wealth Partners analyst Rob Goff.

On Wednesday, D-Box announced it had signed an agreement with PVR Cinemas to install 400 of its motion seats in four locations in Mumbai and Delhi.

“This new partnership with PVR Cinemas, the largest, premium film company in the country, comes as we celebrate our 10-year anniversary in the theatrical industry, so it’s even more special for us,” states Claude Mc Master, president and chief executive officer of D-Box. “Of course, we are always thrilled to introduce our celebrated motion technology to new audiences, but this is especially exciting because of the country’s infatuation with the moviegoing experience and renowned admiration for great stories.”

Goff says this a great first step for D-Box in a potentially big market.

“We see this as an opportunity for DBOX to enter the Indian market and expand its relationship with Bollywood Studios, where movies are a good mix of action and dance that fit well with the experience offered by D-BOX,” the analyst writes. “We are encouraged by the back to back deals signed by management after a tough FQ219, where net screen adds fell below our expectations, due to delayed decision-making by the exhibitors.”

In a research update to clients today, Goff maintained his “Speculative Buy” rating and one-year price target of $0.35 on D-Box, implying a return of 105.9 per cent at the time of publication.

Goff thinks the company will post Adjusted EBITDA of $2.1-million on revenue of $36.4-million in fiscal 2019.

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About The Author /

Cantech Letter founder and editor Nick Waddell has lived in five Canadian provinces and is proud of his country's often overlooked contributions to the world of science and technology. Waddell takes a regular shift on the Canadian media circuit, making appearances on CTV, CBC and BNN, and contributing to publications such as Canadian Business and Business Insider.

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