Motilal Oswal has given Neutral recommendation for PVR with a target price of Rs. 1675 in its research report issued on Oct 17, 2022

Motilal Oswal’s research report on PVR

Recovering from the COVID-19 woes last quarter, PVR net income again turned negative to INR568m, pulled down by 39% QoQ fall in admits. While management attributed it to weak content slate, but the same movies are racking good viewership on OTT. The company indicated that a good content pipeline will provide for a healthy recovery from 3QFY23. This, along with 110-125 screen addition target for FY23, should support revenue growth. Box office collections have seen a mixed bag, raising concerns around OTT. We reiterate our Neutral rating with a TP of INR1,675.


We expect the business to normalize by end-FY23 with EBITDA margins nearing pre-covid levels of 16%. The rich valuation it has been commanding historically has contracted, given the slower growth in the business and the risk posed by OTT players. We value PVRL at 12x FY24E EV/EBITDA to arrive at our TP of INR1,675. We reiterate our Neutral rating.

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