Accumulate PVR; target of Rs 1587: Geojit

Geojit's research report on PVR

Q4FY18 revenue grew at healthy rate of ~19% on a YoY basis while PAT grew by 1700% (YoY) owing to better than expected operating leverage. Added 13 new screens in Q4FY18 while average occupancy stood at 31.5% slightly higher than our expectations. Average Ticket Prices (ATP) witnessed a ~10%YoY growth and Food & Beverages spend per head (F&B sph) grew by ~12% YoY showing attractive consumption patterns among movie goers.

Outlook

We revise upward our FY19E & FY20E PAT estimates by 8% & 7% respectively due to factor in improving operating leverage and consolidation benefits eyed by the company going forward. With healthy growth rate expectations in both Revenue (+20%) and PAT (+30%), we upgrade our rating to Accumulate from Hold with a revised TP of Rs1587 based on 34x FY20E EPS.