Buy PVR; target of Rs 935:ICICIDirect

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26 Aug, 2025 12:21

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ICICIDirect's research report on PVRThe revenue growth of 19.1% YoY was driven by ATP growth of 7% YoY to | 200 and footfalls of 16.5 million (up 3% YoY). As per management, footfalls were cannibalised to an extent by the clash of Bajirao Mastani and Dilwale. Net ticketing revenues grew 8.9% YoY to | 251.2 crore. Spends per head grew 10.4% YoY to | 74 resulting in 15% YoY growth in F&B revenues to | 113.6 crore. Advertisement revenues grew 28.6% YoY to | 69.3 crore EBITDA came in at | 85.3 crore, higher than our expectation of | 81 crore. EBITDA margins came in at 17% vs. our expectation of 16.2% on the back of traction in higher margin generating ad revenues PAT came in at | 29.9 crore (ahead of our estimates of | 21.8 crore) aided by superior margins and lower-than-expected tax rate We continue to remain positive on the multiplex space given the demographics, rising income levels and cinema being the cheapest source of out of home entertainment. PVR is poised to benefit from leadership and strong presence across locations coupled with other growth levers such as advertisement and F&B. We factor in 15.7% & 22.7% CAGR in revenues & EBITDA, respectively, for FY15-18E. The revenue growth of 19.1% YoY was driven by ATP growth of 7% YoY to | 200 and footfalls of 16.5 million (up 3% YoY). As per management, footfalls were cannibalised to an extent by the clash of Bajirao Mastani and Dilwale. Net ticketing revenues grew 8.9% YoY to | 251.2 crore. Spends per head grew 10.4% YoY to | 74 resulting in 15% YoY growth in F&B revenues to | 113.6 crore. Advertisement revenues grew 28.6% YoY to | 69.3 crore EBITDA came in at | 85.3 crore, higher than our expectation of | 81 crore. EBITDA margins came in at 17% vs. our expectation of 16.2% on the back of traction in higher margin generating ad revenues PAT came in at | 29.9 crore (ahead of our estimates of | 21.8 crore) aided by superior margins and lower-than-expected tax rate We continue to remain positive on the multiplex space given the demographics, rising income levels and cinema being the cheapest source of out of home entertainment. PVR is poised to benefit from leadership and strong presence across locations coupled with other growth levers such as advertisement and F&B. We factor in 15.7% & 22.7% CAGR in revenues & EBITDA, respectively, for FY15-18E. We continue to maintain BUY recommendation and roll over our valuations to FY18 at 12x FY18E EV/EBITDA, arriving at a revised target price of | 935. We continue to maintain BUY recommendation and roll over our valuations to FY18 at 12x FY18E EV/EBITDA, arriving at a revised target price of | 935.

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