Meanwhile, the S&P BSE Sensex was up 295.85 points or 0.91% at 32,893.03. The S&P BSE Small-Cap index advanced 1.15%, outperforming the Sensex.

On the BSE, 3,479 shares were traded on the counter so far as against average daily volumes of 25,079 shares in the past one quarter. The stock had hit a high of Rs 473.95 and a low of Rs 462.05 so far during the day. The stock had hit a 52-week high of Rs 500 on 30 November 2017 and a record low of Rs 316 on 11 August 2017.

The stock had outperformed the market over the past one month till 6 December 2017, sliding 0.11% compared with the Sensex's 3.36% fall. The stock had also outperformed the market over the past one quarter, gaining 19.86% as against the Sensex's 2.95% rise. The scrip had, however, underperformed the market over the past one year, advancing 4.08% as against the Sensex's 23.51% rise.

The small-cap company has equity capital of Rs 27.60 crore. Face value per share is Rs 10.

According to reports, the brokerage believes that consolidation is likely to enhance in-cinema ad opportunity adding that earnings delivery along with execution will be the key to stock performance. It is of the view that merger with Qube is likely to increase geographical strength and client base and feels that GST and demonetization impact with subdued content are temporary issues and provide buying opportunity in the stock.

On a consolidated basis, UFO Moviez India's net profit fell 47.8% to Rs 10.20 crore on 12.8% decline in net sales to Rs 138.88 crore in Q2 September 2017 over Q2 September 2016.

UFO Moviez India is a leading digital cinema distribution network and in-cinema advertising platform in India in terms of number of screens.