Sharekhan has given Buy recommendation for PVR with a target price of Rs. 1900 in its research report issued on Oct 22, 2021
Sharekhan’s research report on PVR
As theaters were closed for part of the quarter in most states (and fully in Maharashtra), Q2 numbers remained weak. However, PVR successfully re-negotiated rent and CAM contracts for 80% of its properties. PVR is well-placed to capitalise on strong pent-up demand and report strong revenue growth over FY2023E-FY2024E. Management indicated green shoots in demand recovery. With permanent savings of over 10% on select pre-COVID fixed costs, we expect EBITDA margins to remain above pre-pandemic operating profitability in FY2023E and FY2024E.
We maintain a Buy on PVR Limited with a PT of Rs. 1,900, given strong pent-up consumer demand, robust content line-up and anticipated permanent reduction in fixed expenses.