Sharekhan has given Buy recommendation for PVR with a target price of Rs. 1900 in its research report issued on Sep 21, 2021

Sharekhan’s research report on PVR

PVR is India’s premier multiplex player that leads with the most number of screens, clocks higher revenue per screen and has a premium screen portfolio. It has 98 luxury screens (12% of total) and is expected to grow going ahead. PVR is well-placed to capitalise on strong pent-up demand and is expected to report strong revenue growth over FY2023E-FY2024E. Further, PVR is expected to add screens aggressively post normalisation, which would aid revenue growth. With permanent savings of 10-15% on select pre-COVID fixed costs, we expect EBITDA margins to remain above pre-COVID operating profitability in FY2023E and FY2024E.

Outlook

We initiate coverage on PVR Limited with a Buy rating and PT of Rs. 1,900. Stock trades at 9x/8x its FY2023E/FY2024E EV/EBITDA and 36x/26x its FY2023E/FY2024E EPS.

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