PVR INOX Ltd. share price target

PVR Ltd owns and operates multiplexes across 21 States and UT's with 842 screens (including 9 in Colombo). Major income segments for them are Box office, Food & Beverage (F&B;) and Advertisement (Ad). PVR reported revenue of Rs.181Cr (Q3FY21-Rs.45Cr) from core operations as theatres operated in a staggered manner. PVR operated with 50% capacity restrictions during the quarter till restrictions imposed on operations for the last 15 days in some states due to the resurgence of covid-19. As of date, only Maharashtra allowed reopening with various restrictions Management is renegotiating rental agreements to save costs and limit...

Notwithstanding the strong response to regional releases, restrictions on occupancy and lack of major Bollywood releases meant footfalls remained limited. Footfalls at 5.8 million were down 70% YoY and ATP at 183 was down 10% YoY (largely owing to mix of releases tilted towards regional). The spend per head (for F&B;) was largely flattish YoY at | 95. Given the second wave, all screens have shut down since April, 2021. The management expects big budget releases from H2FY22 onwards. We bake in 40 screens addition in FY22E and 90 screens addition in FY23E....

PVR's net loss came in at INR1.7b (in line), with operating loss at INR1.2b (est. loss of INR695m), as a recovery in occupancy levels was gradual at 8%, with 50% capacity limits. However, South Indian movies reached 50-60% of pre covid levels and overall ATPs touched 10% below pandemic levels at...

PVR's net loss came in at INR1.7b (in line), with operating loss at INR1.2b (est. loss of INR695m), as a recovery in occupancy levels was gradual at 8%, with 50% capacity limits. However, South Indian movies reached 50-60% of pre covid levels and overall ATPs touched 10% below pandemic levels at...

PVR's operational performance was broadly in-line with our estimates. Emergence of 2nd wave has delayed the recovery process (all screens are currently shut) and footfall stabilization is expected in 2HFY22 given rising instances of localized lockdowns prompting us to cut our FY22E EBITDA estimates by ~43% odd. Nonetheless, we keep our FY23E estimates broadly intact and remain constructive over the long term as content pipeline is strong which is expected to result in bunching up of releases post reopening. We maintain BUY with a revised TP of Rs1,429 (11x FY23EBITDA; no change in target multiple) as 1) the ongoing vaccination drive is expected...

The recent INR8b QIP may keep the liquidity situation manageable and avoid any further dilution, though leverage at 0.8x (FY21E D/E) could rise further. The continued restrictions on Cinema operations is certainly fuelling the OTT market, which could put pressure on occupancies. At FY22E EV/EBITDA, the stock trades 10% lower to pre-COVID historical valuations,...

After remaining severely impacted for nearly a year, weighed by the COVID-19 disruption, the Cinema industry's plea has finally been heard by the central government cinema operators are now allowed to operate their screens with 100% occupancy. Although it would take some months for operations to commence entirely (as many states are still restricting occupancy to 50%), the silver lining is that the release of some fresh content in the regional markets has shown good traction. Moreover, the content pipeline looks strong, with many big banner movies (initially scheduled for release in CY20) awaiting release, including...

PVR Ltd owns and operates multiplexes across 21 States and UT's with a total of 831 screens (including 9 in Colombo). Major income segments for them are Box office, Food & Beverage (F&B;) and Advertisement (Ad)....

PVR reopened its screens everywhere except for Rajasthan and Jharkhand. However, limit to occupancy and lack of new releases meant footfalls did not pick up as envisaged. ATP during the quarter was at |164, down 22% YoY while SPH was at |95, down 5% YoY. The management informed ATP for fresh content has been equal or higher compared to that of pre-Covid level. We believe flow of new releases will be necessary for operating metrics to reach normal levels. We bake in 70 screens addition in FY22E and 90 screens addition in FY23E. Consequently, we build in footfalls growth of...

PVR (PVRL) reported paltry revenue of Rs 454mn (95% YoY) in Q3FY21 as a lack of content and the 50% capacity cap weighed on footfalls.