Buy PVR, target price Rs 2165: Emkay Global

Emkay Global has buy call on PVR with a target price of Rs 2165. The current market price of PVR Ltd. is Rs 1868.8.
Time period given by analyst is one year when PVR price can reach defined target.

PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 11431.07 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 31-03-2022, the company reported a Consolidated Total Income of Rs 579.66 Crore, down -18.32 % from last quarter Total Income of Rs 709.71 Crore and up 120.19 % from last year same quarter Total Income of Rs 263.26 Crore. Company reported net profit after tax of Rs -105.49 Crore in latest quarter.

Investment Rational
PVR’s revenue is likely to jump 67% QoQ, driven by higher footfalls. YoY growth is not comparable due to the second Covid wave situation in Q1FY22. ATP is likely to inch up 1% QoQ to Rs244, attributed to a better mix while SPH is likely to rise by 1.2% QoQ to Rs123. Overall ticket sales are estimated to grow by 69% QoQ, while F&B revenue is likely to grow by 63% QoQ. Advertisement revenue remains well below pre-Covid levels, while it is on a gradual recovery path.


Promoter/FII Holdings
Promoters held 17.01 per cent stake in the company as of 31-Mar-2022, while FIIs owned 41.47 per cent, DIIs 19.28 per cent.