February 08, 2017 / 16:55 IST
Edelweiss' research report on PVR PVR’s Q3FY17 revenue and PAT came in line. Key positives amidst demonetisation were: i) 19% YoY spurt in F&B, aided by 11% YoY increase in SPH and 9% YoY increase in footfalls; ii) 13% YoY rise in ad revenue albeit on high base of 28.6% YoY versus Inox’s 2.4% YoY rise on low base. Q4 is generally a weak quarter for the multiplex industry due to school exams.
OutlookWe remain enthused by PVR’s dominance and expansion in exhibition business and envisage it to continue to benefit from strong content pipeline in FY18 as well. Screen expansions will be a key monitorable. We roll forward to FY19E EPS and maintain ’BUY/SO’ with a target price of INR 1,605. At CMP, the stock is trading at 34.0x FY18E and 23.5x FY19E EPS.
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