Accumulate PVR; target of Rs 1275: Dolat Capital

Dolat Capital's research report on PVR

PVR reported revenue growth of 9.4% YoY on back of higher Net box office collection and better F&B revenue. EBITDA margin improved 211bps YoY to 19.7% due to lower overhead expenses due to GST credits. We expect occupancy levels to improve over the next two quarters helped by a strong Hindi content pipeline.

Outlook

PVR has corrected by almost 16% since the F&B announcement and is currently trading at inexpensive valuations of 10x/9x based on our FY20/FY21 EV/EBITDA estimates. We upgrade PVR to an Accumulate rating and rollover to Sep’19 TP of ` 1,275 (10.5x EV/EBITDA).