Hold PVR; target of Rs 1440: ICICI Direct

ICICI Direct's research report on PVR

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.

Outlook

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).