Hold PVR; target of Rs 1910: ICICI Direct

ICICI Direct's research report on PVR

PVR’s Q4FY19 performance was strong on account of healthy box office collections as well as strong growth from F&B as well as advertisement revenues. Net box office collections came in at Rs 451.3 crore, with footfalls at 27.5 mn. F&B revenues came in at Rs 231.9 crore. Ad revenues grew 22.4% YoY to Rs 88.1 crore. EBITDA came in at Rs 160.8 crore, better than our expectations on account of superior advertisement as well as F&B performance. PAT came in at Rs 46.4 crore, largely in line with expectations as higher depreciation and interest cost offset the outperformance at EBITDA level.

Outlook

However, given the recent run up (up ~20% in last three months), we downgrade it to HOLD. We value it at 12.5x FY21E EV/EBITDA and arrive at a target price of Rs 1910.