Moneycontrol PRO
Upcoming Event:Attend Algo Convention Live, 2 Days & 12+ Speakers at best offer Rs.999/-, exclusive for Moneycontrol Pro subscribers. Register now!

Buy PVR; target of Rs 2227: Prabhudas Lilladher

Prabhudas Lilladher is bullish on PVR has recommended buy rating on the stock with a target price of Rs 2227 in its research report dated May 10, 2022.

May 12, 2022 / 12:57 PM IST
The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

The research firm ICICI Securities believes earnings of apparel brands and retail companies under their coverage may surprise positively from Q3FY22E as the likely demand recovery may result in better than expected margin performance. Some of the costs savings achieved during pandemic may sustain and coupled with high operating leverage may lead to higher than pre-covid margins from Q3FY22E.  Stocks like Trent, V-Mart and Aditya Birla Fashion and Retail are the preferred picks backed by their strong and consistent track record of execution.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Prabhudas Lilladher's research report on PVR


PVR reported decent performance in 4QFY22 with Ind-AS adjusted EBITDA loss of Rs342mn (PLe loss of Rs242mn) amid strong recovery in March. ATP and SPH have witnessed significant jump led by blockbuster content while management highlighted that ad-revenue (key margin lever) is expected to reach pre-COVID base within a quarter. While the last 2 years were marred by COVID, normalcy has finally set in and we expect the momentum to continue given strong content pipeline and easing occupancy restrictions. Plans to open 120-125 screens in FY23E, expected recovery in ad-revenue within a quarter to pre-COVID base, and improved pricing power (ATP/SPH were 19%/27% above pre-COVID base) is likely to result in revenue/EBITDA CAGR of 9.5%/10.9% over 4 years on a pre-COVID base of FY20.



Outlook


Retain BUY on the stock with a TP of Rs2,227 after assigning EV/EBITDA multiple of 15.5x (no change) to the merged entity.

Close

For all recommendations report, click here


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.




Download your money calendar for 2022-23 here and keep your dates with your moneybox, investments, taxes

Broker Research
first published: May 12, 2022 12:57 pm
Sections
ISO 27001 - BSI Assurance Mark