Prabhudas Lilladher Research Report on Stainless Steel PVR
In a lackluster quarter, PVR-Inox’s performance overall matched sales of 33.9 million (PLe 33 million) and EBITDA AS margin before IND of 6.2% (PLe of 5.8%) . After the recent success of “Barbenheimer” and MI-7, Bollywood has an interesting release system with movies like Oh My God-2, Gadar-2, Jawan and Dream Girl-2 slated for release. within the next 2 months. Even the regional distribution system is good with films like Jailor, Bhola Shankar and Salaar all set to release in the second quarter of fiscal 2024. Despite concerns about the genre’s continued high volatility Bollywood 1) KPIs maintained (ATP/SPH up 2%/10% y/y on a pro-rata basis), 2) ad revenue expected to recover (a profitable business) high) and 3) Deeper penetration strategy into the Southern market (high traffic geography) will help growth and profit margin.
Opinion
Therefore, we expect an attendance of 154 million/166 million with an EBITDA AS pre-IND ratio of 16.2%/17.8% respectively for the 2024/2025 fiscal year. Keep `BUY’ in stock with TP of Rs 1,797 (previously Rs 1,704) after an EV/EBITDA allocation of 14.5x as we move into FY 2025E.
