Buy PVR; target of Rs 706: Firstcall Research
Firstcall Research is bullish on PVR and has recommended buy rating on the stock with a target of Rs 706, in its December 5, 2013 report.
December 10, 2013 / 12:41 IST
Firstcall Research report on PVR:
The 1,300-crore PVR Limited entertainment company has reported revenue of Rs. 2368.30 mn in the current quarter compared to Rs. 1764.50 mn in the quarter ended 30th Sep, 2012, an increase of 34.22%. During the quarter, Net Profit is increased by 45.92% to Rs. 218.30 mn against Rs. 149.60 mn in previous period of last fiscal. EBITDA is increased by 31.06% to Rs. 453.60 mn against Rs. 346.10 mn in the corresponding period of previous year. During the quarter, Movie Exhibition revenue increased by 85% to Rs. 3433.60 mn from Rs. 1851.10 mn in Q2 FY13. Movie Production & Distribution revenue was decreased by 15% to 61.20 million from Rs. 72.10 million in Q2 FY13.CRISIL has assigned its ‘CRISIL A+/Stable’ rating to the Rs. 230 Crores Non Convertible Debentures programme of PVR Limited is continue to reflect PVR strong market position and established brand in the film exhibition business, healthy operating efficiencies, and moderate financial risk profile, marked by moderate gearing and debt protection metrics. The multiplex targets to sell tickets worth of Rs. 1000 crores over next five years exclusively on BookMyshow.com besides its existing sale of tickets from its Box Office and other channels. The 1,300-crore PVR Limited proposes to add another 30 screens in the current financial year and expected to add 70-80 screens every year to change the cinema viewing experience of the people, in the Cinema Industry. We expect the company to post a CAGR of 32% and 46% in its top-line and bottom-line respectively. The outlook for the FY 2013-14 is positive and barring the unforeseen circumstances the company’s performance is expected to show continued growth. Hence, we recommend ‘BUY’ for ‘PVR LTD’ with a target price of Rs 706 on the stock.Disclaimer: The views and investment tips expressed by investment experts 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. 
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