Buy PVR., target Rs 1255: Edelweiss Financial Services

Edelweiss Financial Services has Buy call on PVR Ltd. with a target price of Rs 1255.0. The current market price of PVR Ltd. is 1124.35. Time period given by analyst is year, when PVR Ltd. price can reach defined target. Edelweiss is impressed with PVR’s dominance and expansion in exhibition business and envisage the company to continue to benefit from strong content pipeline in FY17 too. We estimate PVR to log 19.8% EPS CAGR over FY16-18. At CMP, the stock is trading at 38.1x FY17E and 28.6x FY18E EPS. Edelweiss maintains sector Outperformer’ on PVR.