Hold PVR; target of Rs 1260: ICICI Direct

ICICI Direct's research report on PVR

PVR reported a washout Q1FY21, on expected lines, given the complete closure of cinemas throughout the quarter. Revenue came in at Rs 12.7 crore (98.6% YoY de-growth). While no box office and ad revenues were reported, the company reported Rs 1.4 crore of F&B revenues and Rs 2.9 crore of digital rights revenues through its subsidiaries whereas other operating income of Rs 8.3 crore was reported. The company invoked Force Majeure leading to no rental expenses. EBITDA loss (without impact of Ind-AS 116) was at Rs 116 crore. The company accounted for Rs 28.1 crore of rent concession as other income. Consequently, PVR reported a net loss (ex-Ind-AS 116) at Rs 141 crore. On a reported basis, net loss was at Rs 225.6 crore.

Outlook

We maintain HOLD rating and value the stock at 12x FY22E (ex-Ind-AS) EV/EBITDA with a revised target price of Rs 1260/share.