Buy PVR: target of Rs 1900: Sharekhan

Sharekhan's research report on PVR

As theaters were closed for part of the quarter in most states (and fully in Maharashtra), Q2 numbers remained weak. However, PVR successfully re-negotiated rent and CAM contracts for 80% of its properties. PVR is well-placed to capitalise on strong pent-up demand and report strong revenue growth over FY2023E-FY2024E. Management indicated green shoots in demand recovery. With permanent savings of over 10% on select pre-COVID fixed costs, we expect EBITDA margins to remain above pre-pandemic operating profitability in FY2023E and FY2024E.

Outlook

We maintain a Buy on PVR Limited with a PT of Rs. 1,900, given strong pent-up consumer demand, robust content line-up and anticipated permanent reduction in fixed expenses.

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