Buy PVR, target price Rs 2100: ICICI Securities

ICICI Securities has buy call on PVR with a target price of Rs 2100. The current market price of PVR Ltd. is Rs 1694.2.
Time period given by analyst is one year when PVR Ltd. price can reach defined target.

PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 10312.61 Crore) operating in Media & Entertainment sector.


PVR Ltd. 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 30-09-2022, the company reported a Consolidated Total Income of Rs 703.13 Crore, down -29.85 % from last quarter Total Income of Rs 1002.26 Crore and up 155.49 % from last year same quarter Total Income of Rs 275.21 Crore. Company reported net profit after tax of Rs -71.49 Crore in latest quarter.

Investment Rationale
The weak print in Q2FY23 is transitory in view and structural thesis on PVR remains intact. It cuts EPS estimates by 29% and 7% for FY23E and FY24E on lower occupancy and weak ad revenue. Accordingly, target price is cut to Rs2,100 (from Rs2,300) with unchanged multiple of 16x FY24E EBITDA. Maintain BUY. Key risks: Lower than expected occupancy; and higher than expected cost.

Promoter/FII Holdings
Promoters held 16.99 per cent stake in the company as of 30-Jun-2022, while FIIs owned 44.71 per cent, DIIs 18.04 per cent.