Please refer to important disclosures at the end of this report
1
PVR Limited is a film entertainment company, which is engaged in the motion
picture exhibition in cinemas. The Company has organized its operations into
three business segments namely Movie exhibition, Movie Production &
Distribution, and Others. Q4 is generally a weak quarter for the multiple
x
industry due to school exams. However, Q4FY17 has a strong line up with
starled movies, which will do well. PVR continues to innovate with offerings like
‘Vkaao’ (enabling consumers to watch movies of their choice), ‘Chatbot’
(artificial intelligence service that provides assistance to book tickets) and ‘drivein
theatres’, which will hold it in good stead over long term.
W
ith movies like
Dangal, Kaabil and Raees, Jolly LLB resulted in one of the best earnings for PV
R
after a long time. The company expects 35 screens to open in next 2 months
(added 26 new screens in 9mFY17). By AprilMay 2017, it will complete
renovation of DT Cinemas (total renovation capex at `1520cr) and full benefits
will kick in from FY18. PVR’s dominance and expansion in exhibition business
and envisage it to continue to benefit from strong content pipeline in FY18 as
well. Screen expansions will be a key monitorable. The company has good
consistent profit growth of 67.32% over 5 years. Hence Buy.
BUY
CMP `1,425
Stock Info
Sector
Beta
Bloomberg Code
Shareholding Pattern (%)
Promoters 25.3
MF / Banks / Indian Fls 36.2
FII / NRIs / OCBs 32.2
Indian Public / Others 6.4
Abs. (%) 3m 1yr 3yr
Sensex 8.2 17.6 32.0
PVR 28.6 91.6 176.4
52 Week High / Low 1490/697
Avg. Daily Volume 16,593
Entertainment
Market Cap (
`
cr) 6,661
10
BSE Sensex 28,946
Nifty 8,935
Face Value (
`
)
Reuters Code PVRL.BO
0.7
Vaibhav Agrawal
022 – 3935 7800 Ext: 6808
PVR
Others | Entertainmen
t
March 14, 2017
PVR | Entertainment
March 14, 2017
2
Research Team Tel: 022 - 39357800 E-mail: [email protected] Website: www.angelbroking.com
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Disclosure of Interest Statement PVR
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
p
eriod
)
: Reduce
(
-5% to -15%
Sell
(
< -15
)