Hold PVR; target of Rs 1440: ICICI Direct

ICICI Direct's research report on PVR
PVR reported its Q1FY18 numbers with revenues at Rs 636.6 crore, up 11.6 % YoY (vs. Idirect estimates of Rs 624.6 crore). ATP growth, at 7.5% YoY to Rs 214, was boosted by strong content slate in Q1FY18 led by Baahubali2 and decent grosser such as Tubelight, Fate of the Furious and Hindi Medium. Footfalls at 21 million, down 0.3% YoY, were muted as other movies barring Baahubali2 falied to meet  expectations. The consequent net ticketing revenues were up 12.3% YoY at 343.3 crore. Ad revenues were up 30.9% YoY to Rs 67.4 crore.

Outlook

We continue to prefer Inox over PVR. We maintain our HOLD rating on  PVR and value it at 14x  FY19E  EV/EBITDA, arriving at a revised target price of Rs 1440. For all recommendations report, click here

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31-07-2017-12