PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 9032.16 Crore) operating in Media & Entertainment sector.
Financials
For the quarter ended 31-12-2020, the company reported a Consolidated Total Income of Rs 320.13 Crore, up 189.42 % from last quarter Total Income of Rs 110.61 Crore and down -65.35 % from last year same quarter Total Income of Rs 923.89 Crore. Company reported net profit after tax of Rs -49.21 Crore in latest quarter.
Investment Rationale
Over the next 6-9 months, the resumption of total operations should aid earnings recovery, keeping the stock in good stead; however, the overhang of OTT and subsequent risk of softening occupancies could put pressure on the valuation band over time – given the risk of softening occupancies. Thus, the brokerage maintains Neutral, with TP of INR 1,620 and a valuation of EV/EBITDA of 14x (in-line with the five-year average) on FY23E.
Promoter/FII Holdings
Promoters held 18.8 per cent stake in the company as of Dec 30, 2020, while FIIs held 38.5 per cent, DIIs 26.6 per cent and public and others 16.1 per cent.
