Angel Broking neutral on PVR

Angel Broking has maintained neutral rating on PVR, in its June 05, 2012 research report.

“PVR reported a loss of Rs12.3cr in 4QFY2012 on the earnings front. The increase in losses on a yoy basis was due to exceptional expense of Rs14.5cr incurred on account of service tax expense in the previous financial year and further ~Rs6cr pertaining to the preceding three quarters.”

“For 4QFY2012, PVR reported a good performance on the revenue front. The company posted top-line growth of 32.9% yoy to Rs117.2cr. Movie exhibition grew by 52.4% yoy and contributed Rs104.4cr to the company’s top line. Bowling Center recorded robust growth of 107.1% and stood at Rs6.8cr. However, OPM contracted by 1,584bp yoy to 3.6% on account of increased rental cost due to 12% service tax levied on lease rentals.”

“For FY2012-14E, we expect PVR to register a ~13% CAGR in its top line, aided by seat additions and higher contribution from bowling alleys. However, operating margin will remain under pressure on account of levy of service tax on lease rent. At the CMP of Rs152, the stock is trading at 9.7x FY2014E EPS. We continue to remain Neutral on the stock,” says Angel Broking research report.       

Non-Institutions holding more than 90% in Indian cos

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