Prabhudas Lilladher has given Buy recommendation for PVR with a target price of Rs. 2119 in its research report issued on Oct 17, 2022

Prabhudas Lilladher’s research report on PVR

Along expected lines, PVR reported a dismal performance in 2QFY23 with Ind-AS adjusted loss of Rs567mn (PLe loss of Rs617mn) given weak content performance. Nonetheless, we remain confident of future prospects as 1) 2QFY23 was an aberration marred by negative social media drive against Bollywood movies 2) content slate for near term is healthy with releases like Ram Setu, Thank God, Drishyam-2, Avatar and Black Panther in pipeline 3) ad-revenue, a key margin lever, is showing signs of recovery and 4) regional content (share increased to 44% in 2QFY23 as compared to 28% in 2QFY20) has gradually started finding pan-India acceptance diversifying genre risk. Anticipating a back ended recovery we expect footfalls in FY23E to be at par over pre-pandemic base and largely keep our sales/EBITDA estimates intact.


We expect sales/EBITDA CAGR of 19%/21% over FY23-25E and retain our BUY rating on the stock with a TP of Rs2,119 after assigning EV/EBITDA multiple of 15.5x (no change) to the merged entity.

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