Motilal Oswal's research report on PVR
Continuing its strong momentum, PVRL (ex-SPI) reported robust revenue/EBITDA growth of 28%/50% YoY to INR7,239m/INR1,416m on the back of healthy net box office and F&B revenue. Further, consolidation of SPI Cinemas led to 43% YoY jump in consol. revenue to INR8,376m (10% beat). Consol. EBITDA at INR1,608m, grew 70% YoY (15% beat); margins expanded 310bp YoY to 19.2% due to operating leverage benefits. Consol. PAT grew 78% YoY to INR467m (58% beat). FY19 consol. revenue/EBITDA/PAT was up 32%/46%/47% YoY.
Outlook
Healthy growth prospects along with a strong competitive position favor premium valuations. Subsequently, we ascribe 13x EV/EBITDA (approx. five-year average multiple) to FY21E EBITDA of INR7.8b, arriving at TP of INR1,950, offering 13% upside. Maintain Buy.
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