MOSL: PVR (Buy)-First half ends well-screen adds making growth story interesting
PVR: First half ends well; screen adds making growth story interesting
(PVRL IN, Mkt Cap USD1.3b, CMP INR1839, TP INR2280, 24% Upside, Buy)
- A beat on most fronts: revenue grew significantly by 37% YoY to INR9.7b, mainly driven by healthy screen addition (touched the vital mark of 800 screens) and a robust line-up of movie releases. In our view, this performance is remarkable given the prevailing economic slowdown. EBITDA grew 57% YoY to INR1.9b (30% beat), with the margin expanding 250bp YoY. PAT too was up by an impressive 93% YoY (+49% QoQ) to INR0.7b (54% beat). In 1HFY20, net debt rose by INR354m (3% HoH) to INR13b, while net capex was up 1.5% YoY to INR2,159m. Also, revenue showed an impressive YoY growth of 32% YoY along with EBITDA/PAT growth of 35%/28% for 1HFY20.
- Concall highlights: (1) Management guided for 50-60 screen adds in 2QFY20 and 80-100 screens annually. (2) ATP increased by 4-5%; expected to grow at the same rate in future. (3) PVR will continue on the previous high taxes regime for the next two years until the MAT credits are exhausted.
- Growth visibility healthy; focus on screen addition bodes well: We expect healthy 16%/12% consol. revenue/EBITDA CAGR over FY19-21 on the back of robust screen additions. Although growth in south India has been relatively slow, management expects a turnaround in the second half this year, which will likely provide additional support to earnings. We increase our EBITDA estimate by 9%/4% for FY20/21, given the strong second-quarter performance and management's focus on screen addition
PVR Limited is an India-based holding company. The Company 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: Movie exhibition, Movie Production & Distribution, and Others. Its Others segment includes bowling, gaming and restaurant. The Company is also engaged in in-cinema advertisements/product displays and sale of food and beverages at cinema locations. The Company offers technologies, including 4DX Technology, which stimulates the senses with effects, such as seat motion, wind, rain, fog, lights and scents to match the audio and video in both two-dimensional (2D) and three-dimensional (3D); IMAX, which provides a viewing technology with optimized sound and projection system, and Playhouse, which is designed for kids. The Company operates a network of approximately 550 screens spread over 120 properties in approximately 50 cities across the country.
Motilal Oswal Financial Services Ltd. is a reputed name in Financial Services and Online Trading with group companies providing services such as Private Wealth Management, Retail Broking and Distribution, Institutional Broking, Asset Management, Investment Banking, Private Equity, Commodity Broking, Currency Broking, Principal Strategies & Home Finance.
Motilal Oswal Securities is a group company of Motilal Oswal Financial Service Limited which started as a stock trading company and has blossomed into well diversified firm offering a range of financial products and services. Motilal Oswal has built a reputation as the source for best stock trading company and this has taken a wealth of experience, knowledge and expertise, constantly working in tandem, over the years.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.