Buy PVR INOX, target price Rs 1640: ICICI Direct

ICICI Direct has buy call on PVR INOX with a target price of Rs 1640. The current market price of PVR INOX is Rs 1352.65. Time period given by analyst is 12 months when PVR INOX price can reach defined target.

PVR INOX, incorporated in the year 1995, is a Mid Cap company (having a market cap of Rs 13249.10 Crore) operating in Media & Entertainment sector.

PVR INOX key Products/Revenue Segments include Income From Films, Beverages & Food, Fees & Other Charges, Income From Advertisement, Other Operating Revenue and Income from Films Production & Distribution for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-03-2023, the company has reported a Consolidated Total Income of Rs 1164.92 Crore, up 21.25 % from last quarter Total Income of Rs 960.75 Crore and up 100.97 % from last year same quarter Total Income of Rs 579.66 Crore. Company has reported net profit after tax of Rs -333.99 Crore in latest quarter.

The company’s top management includes Mr.Ajay Bijli, Mr.Sanjeev Kumar, Ms.Renuka Ramnath, Mr.Anish Kumar Saraf, Mr.Sanjai Vohra, Ms.Deepa Misra Harris, Ms.Pallavi Shardul Shroff, Mr.Gregory Adam Foster, Mr.Vikram Bakshi. Company has BSR & Co. LLP as its auditors. As on 31-03-2023, the company has a total of 10 Crore shares outstanding.

Investment Rationale
The brokerage believes that that with strong content pipeline, recovery will be seen, albeit timing is uncertain. Near term monitorable is big ticket content performance, which has seen inconsistency in performance, post Covid. For the medium term, key trigger will be fructification of synergy benefits.

Promoter/FII Holdings
Promoters held 27.46 per cent stake in the company as of 31-Mar-2023, while FIIs owned 31.2 per cent, DIIs 30.2 per cent.