ICICI Direct has given Buy recommendation for PVR recommended buy rating on the stock with a target price of Rs 1540 in its research with a target price of Rs. 1540 in its research report issued on Jun 03, 2021
ICICI Direct’s research report on PVR
PVR reported losses for a fifth consecutive quarter as expected. While regional releases fared well, lack of Bollywood content and limit to occupancy kept footfalls muted. The box office revenue at Rs 87.9 crore was down 73.9% YoY while ad revenues were at Rs 13.6 crore (down 80% YoY). The company reported Rs 56.6 crore of F&B revenues (down 67.7% YoY). EBITDA loss (ex-Ind-AS 116) was at Rs 127.5 crore. It reported a net loss (exInd-AS 116) at Rs 271.8 crore as the company recognised one-time deferred tax expense of Rs 113 crore. On a reported basis, net loss was at Rs 289.1 crore as it accounted for rental waiver of Rs 70.4 crore as other income.
We now upgrade to BUY (vs. HOLD earlier) as we believe that recovery with increased vaccination push will be sharp. We assign FY23E EV/EBITDA multiple of 12.5x (vs. 11x, earlier) with a target price of Rs 1540/share (earlier TP Rs 1440).