Prabhudas Lilladher has given Buy recommendation for PVR with a target price of Rs. 1891 in its research report issued on Jan 23, 2022
Prabhudas Lilladher’s research report on PVR
PVR’s operational performance was broadly in-line with our estimates with pre Ind-AS EBITDA margin of 6.2% (PLe 7.4%) aided by strong content (5 movies crossed Rs1bn mark). ATP/SPH at Rs239/Rs129 was 14%/28% higher than 3QFY20 (comparable pre-COVID quarter) indicating that recovery has been sharp. While onset of 3rd wave has delayed the recovery process and prompted us to re-align our FY22 reported EBITDA estimates (loss of Rs467mn versus break-even earlier) we keep our FY23/FY24 EBITDA estimates broadly intact amid 1) less severe nature of the virus and 2) pick up in vaccination drive (~70% adult population is fully vaccinated). Further, in 3rd wave we have seen occupancy restrictions being re-imposed rather than outright closures (Delhi and Haryana are exceptions) indicating that recovery to pre-COVID levels will be faster this time around leading to sharp revival in box office revenues due to bunching up of releases.
Consequently, we expect PVR’s FY23 sales/EBITDA to be higher by 14%/18% over the FY20 base. Maintain BUY with a TP of Rs1,891 (earlier Rs1,881) valuing the stock at 11.5x (no change) Sep23 EBITDA.
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At 15:58 hrs PVR was quoting at Rs 1,559.05, up Rs 24.35, or 1.59 percent.
It has touched an intraday high of Rs 1,637.35 and an intraday low of Rs 1,542.80.
It was trading with volumes of 95,984 shares, compared to its thirty day average of 116,688 shares, a decrease of -17.74 percent.
In the previous trading session, the share closed down 2.24 percent or Rs 35.15 at Rs 1,534.70.
The share touched its 52-week high Rs 1,838.00 and 52-week low Rs 961.00 on 08 November, 2021 and 19 April, 2021, respectively.
Currently, it is trading 15.18 percent below its 52-week high and 62.23 percent above its 52-week low.
Market capitalisation stands at Rs 9,503.12 crore.