Hold PVR; target of Rs 1210: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on PVR

PVR reported a washout Q2FY21 as expected. As a result of cinemas being shut, revenue came in at Rs 40.5 crore (95.8% YoY de-growth). Box office revenue of Rs 60 lakh (income from Sri Lanka property) was reported while no ad revenues were reported. F&B income was Rs 3.7 core whereas Rs 27.5 crore of movie distribution rights was reported. The company has invoked Force Majeure leading to no rental expenses. EBITDA loss (without impact of Ind-AS 116) was at Rs 81 crore. The company accounted Rs 64 crore of rent concession as other income. It reported a net loss (ex-Ind-AS 116) at Rs 116.1 crore. On a reported basis, net loss was at Rs 184 crore.

Outlook

We continue to believe PVR is a proxy play on urban/semi urban discretionary spends. However, initial occupancy is very low and other revenue streams such as ad revenue are yet to pick up. Current liquidity of Rs 550 crore will ensure liquidity in near term but quicker recovery in footfalls as well as ATP (depending on pandemic tail) will be important. We maintain HOLD rating and value the stock at 11.5x FY22E (ex-Ind-AS) EV/EBITDA with a target price of Rs 1210/share.

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