Neutral PVR; target of Rs 1620: Motilal Oswal

Motilal Oswal's research report on PVR

EBITDA loss increased 34% QoQ to INR1.1b (v/s our estimate of a loss of INR537m), despite reopening to cinemas as 50% capacity restrictions and lack of fresh content, led to meager (~1%) occupancy. n We roll forward our estimates to FY23E and revise down our FY22E EBITDA/PAT estimates by 3%/12% on the back of slower recovery, thriving OTT market, and changing consumer behavior that could pose a risk to long term occupancies and business economics. We downgrade to Neutral.

Outlook

We downgrade the stock to Neutral, valuing the company at 13x FY23E EV-toEBITDA to arrive at our target price of INR1,620.