Angel Broking neutral on PVR
Brokerage house Angel Broking has maintained a 'Neutral' rating on PVR in its August 01, 2013 research report. The research firm believes that, the stock is fairly valued and offers limited upside from the current market price.
August 02, 2013 / 11:53 IST
Angel Broking's research report on PVR
"PVR's top-line performance for 1QFY2014 was above our estimates, coming in at Rs 335cr. On the operating front, the company's EBITDA margin was in-line with our expectations, coming in at 17.7 percent. Consequently, the net profit came in at Rs 18cr after adjusting for an exceptional loss of Rs 4cr (cinemax's abandoned project written-off from CWIP). Cinemax' financials have been consolidated and hence, the numbers are not comparable yoy.""PVR reported a 3 percent yoy growth in footfalls to 7.8mn for comparable properties. The average ticket price (ATP) recorded a healthy growth of 8 percent yoy to Rs 174. Consequently, ticket sales grew by 12 percent yoy to Rs 104cr. For Cinemax, ticket sales grew by 13 percent to Rs 72cr for comparable properties, mainly on back of a 12 percent yoy growth in ATP. Growth in footfalls was sluggish at 1 percent yoy to 5.5mn.""The company added 59 screens in FY2013 and another 34 screens in 1QFY2014, taking its total tally of multiplex screens to 383. Robust screen additions aided the company to contribute Rs 26cr to ticket sales from non-comparable properties. The robust organic expansion is set to continue with the company planning to add another 55 screens by the end of FY2014."Outlook and valuation: "PVR is expected to register robust revenues on incremental earnings from its newly opened properties, cost savings due to synergies from Cinemax acquisition and an impressive movie pipeline. However, high debt remains a key concern. At the current market price, the stock is trading at 16.3x FY2015E EPS. We believe the stock is fairly valued and offers limited upside from the current market price. Hence, we maintain our Neutral view on the stock," says Angel Broking research report.Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions. 
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