Neutral PVR; target of Rs 1570: Motilal Oswal

Motilal Oswal's research report on PVR

After reporting a weak performance in 2QFY23, PVR saw recovery and reported EBITDA of INR1.3b (v/s Est. INR1.1b) in 3QFY23, led by improving occupancies, (albeit below pre-covid levels) and healthy distribution income, driving up PAT to INR252m (v/s INR53m est.). Healthy content pipeline, expected merger completion between PVR Ltd and INOX Leisure, and a guidance of 150-200 screen additions annually for the combined entity should support growth.

Outlook

However, a mixed bag performance of recent big ticket movies coupled with rising concerns of OTT continue to remain our key monitorables. We reiterate our Neutral rating with a TP of INR1,570.