PVR - 1QFY2014 Result Preview - Angel Broking

For 1QFY2014, we expect PVR to report 65% yoy growth in top-line to Rs. 279cr, due to consolidation of cinemax's financials and good performance in movie exhibition business (with many successful releases during the quarter). However, the company's EBITDA margin is expected to contract by 220bp yoy to 17.8%. Net profit is expected to come in at Rs. 8cr on account of margin contraction and higher interest burden.

At the current market price, PVR is trading at 15.9x FY2015E consolidated EPS of Rs. 21.5. We believe the stock is fairly valued and hence, maintain our Neutral rating on the stock.

Source : Equity Bulls

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