PVR share price rose 2.8 per cent to Rs 1,967 apiece on BSE on Friday, after the company reported a consolidated net profit of Rs 53.38 crore for the June quarter. Leading multiplex chain operator company had posted a net loss of Rs 219.44 crore in the April-June quarter a year ago. At least two research and brokerage firms have buy ratings to the stock and see up to 24 per cent upside potential. 

In the June quarter, PVR’s revenue from movie exhibition was at Rs 984.04 crore and Rs 25.34 crore from movie production, distribution and gaming, among others. Currently, it operates 854 screens pan-India spread over 75 cities. The company is planning to open 125 screens in the current financial year.

Edelweiss Research

BUY | Target Price: Rs 2,373 | Upside Potential: 24%

While PVR remains sensitive to industry disruptions, its strong performance and a promising pipeline are positives. Analysts at Edelweiss Research have raised FY23E/24E by 4.8%/5%, which yielded a revised target price of Rs 2,373 (up from Rs 2,106). It also noted that PVR outperformed on revenue and EBITDA, Moreover, footfalls continue to revive, driving growth. Continued screen expansion and footfall revival augurs well for growth, it said. PVR witnessed strong bounce back in both footfalls and screen additions with 14 new screens. Merger with INOX is on track to file its application with NCLT in the coming weeks.

Emkay Global Financial Services

BUY | Target Price: Rs 2,200 | Upside Potential: 15%

Analysts said that it was a record quarter for PVR, despite weak Bollywood performance. Although there is a strong Bollywood movie line-up for the upcoming quarters, consumer acceptance is key, analysts said. “Given the strong performance, we raise FY23/24 EBITDA estimates by 7.2%/2.3%. Maintain Buy with a revised TP of Rs 2,200,” it added. The content pipeline looks very strong in the near term, with a few big-budget films lined up for the upcoming quarters. It noted key risks of resurgence in Covid-19 cases leading to closure of theatres; OTTs grabbing high-quality content; delayed recovery in ad revenues; regulatory push-back to the merger; and structural increase in the revenue share to producers/distributors. 

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