1
Please refer to important disclosures at the end of this report
1
1
PVR is engaged in the business of Movie exhibition, distribution & production
and also earns revenue from sale of food & beverages. PVR has been
delivering strong growth and reported 18% revenue CAGR for 5 years ended
FY19. Net profit also grew by a stronger 28.8% during the said period. In
1QFY19 also the company registered a strong 26% sales growth owing to
higher footfalls and f&b collections, while average ticket price decreased by
6.5% yoy. Advertisement income also rose by 28% yoy. Simultaneous to the
sales growth and a slow movement in expenses, EBITDA margin widened by
a whopping 1,195bps. As a result PAT also increased and RoE improved.
Players in the film exhibition industry have great scope to grow as the
industry is underpenetrated. Companies like PVR are in a sweet spot now
and PVR itself is trying to get into all the geographies by putting up new
screens and by way of acquiring small players. The company added 36 new
screens in FY20 and has a total count of 794 screens, of which 78 are
premium screens. The overall screen guidance for FY20 is 80-100 screens.
The company indicated that they are planning to spend US$10 million (mn)
on the distribution business.
Currently, the debt-equity is maintained at 0.9x. It delivers an RoE of 16.5%
and also pays out dividend. Hence Buy.
BUY
CMP `1,847
1.1
Reuters Code
PVRL.BO
PVRL IN
10
BSE Sensex
38,594
Nifty
11,440
Face Value (`)
Entertainment
Market Cap (` cr)
89,353
52 Week High / Low
1898/1099
Avg. Daily Volume
22,434
Jaikishan Parmar
022 – 3935 7600 Ext: 6810
jaikishan.parmar@angelbroking.com
PVR Ltd
Others | Entertainment
Sept 25, 2019
2
PVR Ltd| Entertainment
2
Research Team Tel: 022 - 39357600 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement PVR Ltd
1. Financial interest of research analyst or Angel or his Associate or his relative No
2. Ownership of 1% or more of the stock by research analyst or Angel or associates or relatives No
3. Served as an officer, director or employee of the company covered under Research No
4. Broking relationship with company covered under Research No
Ratings (Based on expected returns Buy (> 15%) Accumulate (5% to 15%) Neutral (-5 to 5%)
over 12 months investment period): Reduce (-5% to -15%) Sell (< -15)