Buy PVR, target price Rs 1340: Motilal Oswal

Motilal Oswal has given a buy rating to PVR with a target price of Rs 1340. The share price moved up by 4.22 per cent from its previous close of Rs 1114.80. The stock’s last traded price is Rs 1161.85.

PVR Ltd., incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 6157.03 Crore) operating in Media & Entertainment sector.

Financials
For the quarter ended 30-09-2020, the company reported a Consolidated sales of Rs 40.45 Crore, up 218.50 % from last quarter Sales of Rs 12.70 Crore and down 95.84 % from last year same quarter Sales of Rs 973.18 Crore Company reported net profit after tax of Rs -183.62 Crore in latest quarter.

Investment Rationale
The brokerage expects PVR to reach FY20 EBITDA levels of INR5.8b in FY22E. It values the company at 15x FY22E EBITDA to arrive at Target Price of INR1,340 (v/s INR1,460 earlier).

Promoter/FII Holdings
Promoters held 18.8 per cent stake in the company as of Sept 30, 2020, while FIIs held 34.6 per cent, DIIs 30.1 per cent and public and others 16.6 per cent.