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PVR stock rises nearly 5% post Q4 earnings, what should investors do?

PVR stock rises nearly 5% post Q4 earnings, what should investors do?

PVR stock touched an intraday high of Rs 1,785.2, rising 4.71 per cent against the previous close of Rs 1704.95 on BSE.

 Shares of PVR are trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages. Shares of PVR are trading higher than 50 day, 100 day and 200 day moving averages but lower than 5 day and 20 day moving averages.

Shares of multiplex chain operator PVR rose over 4 per cent today after the firm reported a narrowing of its consolidated loss for the quarter ended March 2022. PVR stock touched an intraday high of Rs 1,785.2, rising 4.71 per cent against the previous close of Rs 1704.95 on BSE.

Shares of PVR are trading higher than 50-day, 100-day and 200-day moving averages but lower than 5-day and 20-day moving averages.

The stock has gained 53 per cent in a year and risen 35.78 per cent in 2022. Total of 0.58 lakh shares of the firm changed hands amounting to a turnover of Rs 10.18 crore on BSE.  The market cap of the firm rose to Rs 10,757 crore.

At 12:24 pm, the stock was trading 3.43 percent higher at Rs 1,762.30 on BSE. The company posted a profit after tax of Rs 105.49 crore for the quarter ended March 31, 2022 against a net loss of Rs 289.12 crore in the year-ago period.

Revenue from operations zoomed 196.68 per cent to Rs 537.14 crore in Q4 against Rs 181.46 crore in the corresponding quarter of last fiscal. Consolidated total income in Q4 stood at Rs 579.66 crore as against Rs 263.26 crore in the year-ago quarter.

The company also said that during the quarter, it added 15 screens across 3 properties and plans to open around 120-125 new screens during FY23.

Here's a look at what brokerages expect from the stock post Q4 results. Brokerage firm, Emkay has maintained a buy call on PVR stock.

PVR Q4 results: Consolidated loss narrows to Rs 105 cr, revenue rises 197%

"Though PVR's screen additions lagged behind Inox in FY22, it is likely to make up for this in FY23 with additions of 120 plus. Ad revenue recovery is in a slow lane and should take 3-4 months to reach pre-Covid levels as national advertisers are yet to fully come back. We are raising FY23/24E revenue by 4.3 per cent /4.1 per cent to factor in higher screen rollouts. Maintain Buy with a revised target price of Rs 2,165 (Rs 2,230 earlier) as we cut the target multiple of the merged firm to reflect the higher CoE while rolling forward valuations to Jun'24E," said the brokerage.

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Motilal Oswal has a neutral rating on the stock post Q4 earnings. "We expect the business to normalize in FY23, with a 57 per cent growth in EBITDA over FY20 levels. The rich valuation it commanded historically may contract, given the slower than earlier growth and risk posed by OTT platforms. We value PVR at 12 times FY24E EBITDA to arrive at our target price of Rs 1,650. We maintain our Neutral rating," the financial services firm said.

ICICI Securities has maintained a buy call on PVR stock and raised its target price.  

"PVR is excited about the currently strong movie pipeline. Recent successes of dubbed Hindi content increase the addressable box office market in India. Ad revenues are crucial for profitability, and the company expects the same to normalise in 3-4 months. We raise our EBITDA estimates by 10-30 per cent over FY23E-FY24E as we increase our average ticket price (ATP) assumption. Accordingly, we increase our target price to Rs 1,965 (from Rs 1,804) and cut EV/EBITDA multiple to 15 times (from 16 times) to bring parity with INOX. Maintain BUY," said ICICI Securities in its earnings review.