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Buy PVR, target Rs 1,442: Edelweiss Financial Services

Buy PVR Ltd. at a price target of Rs 1442.0 .

Last Updated: Jul 30, 2018, 02.57 PM IST
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The current market price of PVR is Rs 1,120.50.
Edelweiss Financial Services has a buy call on PVR with a target price of Rs 1,442.

The current market price of PVR is Rs 1,120.50.

Time period given by the brokerage is one year when PVR price can reach the defined target.

"PVR’s Q1FY19 revenue, EBITDA and PAT stood exceeded our estimates, primarily led by higher F&B revenue. Total revenue spurted 9.4 per cent YoY driven by the 23 per cent YoY jump in net F&B revenue spurred by the 9 per cent YoY increase in SPH; advertising income grew 6.5 per cent YoY on a high base of 31 per cent. EBITDA grew 22.5 per cent YoY and EBITDA margin expanded by 211bps YoY on lower rent and SG&A expenses; and footfall grew 8 per cent YoY following decent line-up of movies. The Maharashtra Food & Civil Supplies Minister’s move to disallow outside F&B inside multiplexes remains a key concern although a similar PIL in Madhya Pradesh has been dismissed this month by the High Court. Factoring in this uncertainty in F&B revenue, we prune FY20E target multiple by 10 per cent to 28x (from 31x) and peg our revised target price at Rs 1,442 (Rs 1,695 earlier)," Edelweiss Financial Services said in a report.
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