Buy PVR, target price Rs 2155: JM Financial

JM Financial has buy call on PVR with a target price of Rs 2155. The current market price of PVR is Rs 1539.4.

PVR, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 15047.78 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 31-03-2023, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The brokerage expects volume driven 24% QoQ revenue decline (+30% YoY) for PVR Inox. A strong start to the quarter due to Pathan’s success got fizzled out as most othermovies failed to attract footfalls. Lower volume and sequentially flattish pricing (ATP/SPH)could drive down margins. The brokerage expect EBITDA break-even pre IndAS.