PVR INOX Ltd. share price target

PVR's reported a strong Q4FY19, in-line with our forecast. While, SPI Cinemas' performance was a slight miss, it was more than offset by the standalone exhibition business. Consolidated revenue/EBITDA grew by 43%/70% YoY in Q4FY19 and EBITDA margin improved by a strong ~300bps YoY to 19.2%. In FY19, PVR added 66 screens on standalone basis and 4 screens in case of SPI Cinemas. For FY20, it targets to add 80+ screens on standalone basis (13 added YTD) and 10-12 screens in case of SPI Cinemas. Our forecast is conservative and factors addition of 70 screens on standalone basis and 8 screens for SPI Cinemas....

PVR's Q4FY19 performance was strong on account of healthy box office collections as well as strong growth from F&B; as well as advertisement revenues. Net box office collections came in at | 451.3 crore, with footfalls at 27.5 mn. F&B; revenues came in at | 231.9 crore. Ad revenues grew 22.4% YoY to | 88.1 crore. EBITDA came in at | 160.8 crore, better than our expectations on account of superior advertisement as well as F&B; performance. PAT came in at | 46.4 crore, largely in line with expectations...

GST rate cut: A positive impetus for growth... GST rate cut expected to stimulate consumption... Effective 1st January, the government has reduced the GST rate on movie tickets above INR 100 from 28% to 18% and for movie tickets price below INR 100 from 18% to 12%. This is a significant step which will make the movie watching experience more affordable and drive consumption. Management has guided for a gradual recovery in both ATP and F&B; growth rates going forward. So far PVR has added 55 new screens in FY19 and we expect them to add 10-15 more screens...

In Q3FY19, reported revenue was at | 843.1 crore, better than expectation of | 765.3 crore. The beat was on account of strong ATP (computed) that came in at ~| 212 (vs. our estimate of | 206) and reported footfalls that were at 25.7 mn vs. our estimate of 23.6 mn. Reported ad revenues grew 28.9% vs. our estimate of 25% YoY Reported EBITDA came in higher at | 164.3 crore, higher than our estimate of | 149.5 crore, given the topline beat. Reported margins came in at 19.5%, in line with our estimates...

25 January 2019 3Q was the first quarter with full three months impact of SPI Cinemas consolidation. revenue was up 51% YoY to INR 8.4b (6% beat). EBITDA surged 62% YoY to INR1.6b (11% beat), with the margin expanding 130bp YoY to 19.5%. PAT grew 79% YoY to INR518m (29% beat). However, excluding SPI Cinemas, revenue was up 27% YoY to INR6,949m, driven by strong growth across segments, while EBITDA/PAT grew 40%/62% YoY. Excluding SPI Cinemas, PVR added 33 screens, reaching a total of 676 screens. Subsequently, admits were up 23% YoY to 21.3m. This, coupled with a 3% YoY uptick in ATP to INR220, drove a 26% YoY jump in ticketing revenue. F&B; revenue grew at a healthy 24% YoY, led by the uptick in admits, partly offset by a 3% YoY drop in SPH (INR90). Ad revenue rose 16% YoY to INR1b, while convenience fees grew 1.

We value PVR at 34x FY20E EPS and change the rating to Hold from Buy with a revised TP of Rs1,389. Screen additions and SPI integration to drive growth... Revenue growth aided by higher footfalls and occupancy rates Q2FY19 revenue grew at ~ 28%YoY mainly attributed to higher footfalls (14% growth) and occupancy rates (380bps up) on a YoY basis. Net ticket revenue and F&B; collections registered a growth of 17% and 25% respectively, while advertisement revenue grew by 13% YoY. Management has guided for a gradual recovery in sph in the coming quarters....

PVR has maintained its target to add 91 screens (ex-SPI Cinemas) in FY19. We remain conservative and maintain our forecast for addition of 70 screens. A higher screen addition remains an upside trigger to our forecast. PVR also confirmed that it would launch its low-cost brand for Tier 2-3 cities in FY19. We fine tune our EBITDA and EPS forecast for FY19/20E. We maintain BUY with TP of...

ICICI Securities Ltd | Retail Equity Research PVR reported strong set of number riding on healthy content performance and aided by recently acquired SPI cinema acquisition consolidation (from 17th Aug, 2018). Q2FY19 reported revenue came in at |708.6 crore, up 27.6% YoY. For comparability with our estimates, Revenues (ex SPI) stood at | 652.7 crore, up 17.5% YoY and in line with our expectation of 653.12 crore. The PVR (ex SPI) ATP, stood at |211 ( vs our expectation of |210) and footfalls which...

PVR has announced acquisition of SPI Cinemas, a leading multiplex player in the Southern market. The acquisition is expected to be complete in a month and would make PVR no. 1 player in key markets like Chennai, Bangalore and Hyderabad. PVR would pay EV of Rs10 bn in total and would fund it through a combination of internal accruals, debt and equity. Based on the brief financials of SPI Cinemas shared...

ICICI Securities Ltd | Retail Equity Research PVR Ltd has announced the acquisition of south India based multiplex player SPI Cinemas, a leading exhibitor in South India for an EV of | 1043 crore. The company, in FY18, reported a topline of ~| 310 crore and EBITDA of | 63.3 crore, with margins of 20.4%. It operates in all southern states (major player in Chennai) and also has a presence in Mumbai (five screens). Total number of operational screens are 76 (including four screens each in Hyderabad, Bengaluru to be opened in the next 12...