PVR reported losses for fourth consecutive quarter as expected. While cinemas reopened during the quarter, low footfalls owing to occupancy limit and still prevailing Covid-19 situation led to marginal revenues. Box office revenue of Rs. 13.4 crore was reported while F&B income was Rs. 14 crore. The company has negotiated rentals post reopening with landlords. EBITDA loss (ex-Ind-AS 116) was at Rs. 126.8 crore. It reported a net loss (ex-Ind-AS 116) at Rs. 136.6 crore. On a reported basis, net loss was at Rs. 49.1 crore as it accounted Rs. 266.8 crore of rent concession as other income.
Valuation & Outlook
We continue to believe PVR is a proxy play on urban/semi urban discretionary spends. With recovery being a function of tail of pandemic and content pipeline with streaming platforms lapping up big titles being a risk, occupancy is likely to be limited in near term. We maintain HOLD rating and value the stock at 11x FY23E (ex-Ind-AS) EV/EBITDA with a target price of Rs. 1440/share (previous TP: Rs. 1210). We believe most of the positives are already factored in after the sharp run up (up ~39%) in the last ~2.5 months and will await a better entry point before turning buyers.
For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_PVR_Q3FY21.pdf
Shares of PVR LTD. was last trading in BSE at Rs.1498.6 as compared to the previous close of Rs. 1473.4. The total number of shares traded during the day was 165558 in over 10730 trades.
The stock hit an intraday high of Rs. 1515.85 and intraday low of 1425. The net turnover during the day was Rs. 244008782.