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Buy PVR: target of Rs 1900: Sharekhan

Sharekhan is bullish on PVR has recommended buy rating on the stock with a target price of Rs 1900 in its research report dated September 21, 2021.

September 23, 2021 / 10:42 AM IST
HDFC Securities research report's outlook and valuations:  500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."" title="HDFC Securities research report's outlook and valuations:  "The YTD EPS upgrades (consensus) have been led by mid-tiers such as Tata Elxis, Mindtree, Mastek, and Persistent Systems, ranging from 20-40 percent and, within tier 1, by Wipro (~15%). We expect the sector (coverage universe) to post 13 percent and 14.5 percent USD revenue/APAT CAGR over FY21-24E compared to 6.5/7.5 percent over the past five years. The mid-tier valuation premium relative to tier 1s may sustain, based on its relative outperformance (>500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."" width="100%" height="auto" >

HDFC Securities research report's outlook and valuations:  "The YTD EPS upgrades (consensus) have been led by mid-tiers such as Tata Elxis, Mindtree, Mastek, and Persistent Systems, ranging from 20-40 percent and, within tier 1, by Wipro (~15%). We expect the sector (coverage universe) to post 13 percent and 14.5 percent USD revenue/APAT CAGR over FY21-24E compared to 6.5/7.5 percent over the past five years. The mid-tier valuation premium relative to tier 1s may sustain, based on its relative outperformance (>500bps growth outperformance over FY21-24E as compared to 250bps earlier). We roll over valuations to Sepemtember-23E and increase target multiples for most of the companies in our coverage universe. We remain broadly constructive across the sector and ahead of consensus on growth/EPS; our preferred picks are Infosys, HCLT, Mphasis and Zensar."

 
 
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Sharekhan's research report on PVR


PVR is India’s premier multiplex player that leads with the most number of screens, clocks higher revenue per screen and has a premium screen portfolio. It has 98 luxury screens (12% of total) and is expected to grow going ahead. PVR is well-placed to capitalise on strong pent-up demand and is expected to report strong revenue growth over FY2023E-FY2024E. Further, PVR is expected to add screens aggressively post normalisation, which would aid revenue growth. With permanent savings of 10-15% on select pre-COVID fixed costs, we expect EBITDA margins to remain above pre-COVID operating profitability in FY2023E and FY2024E.



Outlook


We initiate coverage on PVR Limited with a Buy rating and PT of Rs. 1,900. Stock trades at 9x/8x its FY2023E/FY2024E EV/EBITDA and 36x/26x its FY2023E/FY2024E EPS.


For all recommendations report, click here


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first published: Sep 23, 2021 10:42 am

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