Buy PVR, target price Rs 1800: Sharekhan by BNP Paribas

Sharekhan by BNP Paribas has buy call on PVR with a target price of Rs 1800. The current market price of PVR is Rs 1547.4.

PVR, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 15150.36 Crore) operating in Media & Entertainment sector.

PVR key Products/Revenue Segments include Income From Films, Beverages & Food, Fees & Other Charges, Income From Advertisement, Other Operating Revenue and Income from Films Production & Distribution for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 960.75 Crore, up 36.64 % from last quarter Total Income of Rs 703.13 Crore and up 35.37 % from last year same quarter Total Income of Rs 709.71 Crore. Company has reported net profit after tax of Rs 15.92 Crore in latest quarter.

The company’s top management includes Mr.Ajay Bijli, Mr.Sanjeev Kumar, Ms.Renuka Ramnath, Mr.Anish Kumar Saraf, Mr.Sanjai Vohra, Ms.Deepa Misra Harris, Ms.Pallavi Shardul Shroff, Mr.Gregory Adam Foster, Mr.Vikram Bakshi. Company has BSR & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 6 Crore shares outstanding.

Investment Rationale
The brokerage maintains a Buy on PVR with a revised PT of Rs. 1800 (based on FY25E EV/EBITDA of 11x on merged entity EBITDA estimate of ~Rs. 1700 crore) given the likelihood of synergy benefits on revenues and cost front over the medium term, promising content pipeline and potential market share gains from penetration in tier 2-3 regions.

Promoter/FII Holdings
Promoters held 16.94 per cent stake in the company as of 31-Dec-2022, while FIIs owned 42 per cent, DIIs 24.94 per cent.