PVR is one of India’s largest multiplexes and continues to grow post-pandemic. The company’s current market price (CMP) is Rs. 1706, while the company has recommended the target price at Rs. 2165, giving it a Buy rating.
However, PVRL’s revenue declined by 12.5% QoQ to Rs. 5.4 billion, but exceeded company estimates on a slightly higher ATP, SPH and steps. Footsteps in PVR lobbies saw a sharp rebound in March as the Omicron wave receded. Its net box office receipts in the same month also surpassed pre-Covid levels. In the fourth quarter, attendance was 14.3 million, which was impressive, as the period had fewer operational days. March contributed 64% of attendance. ATP fell to Rs. 242, while SPH was down 5.4% QoQ at Rs. 122 on a high basis.
Emkay Global commented: “While PVR screen additions lagged Inox in FY22, they are likely to make up for this in FY23 with additions of 120+ Ad revenue recovery is slow and expected to take 3-4 months to reach pre-Covid levels as domestic advertisers have not yet fully recovered We are increasing FY23/24E revenue by 4 .3%/4.1% to account for higher screen deployments Maintain buy with revised TP of Rs. to reflect the higher CoE while deferring valuations to Jun’24E.
Voltas Limited is an Indian multinational home appliance company that has been contributing significantly to the Indian markets for years. The current market price (CMP) is Rs. 1047, however, the company has set a target price of Rs. 1000, giving it a holding rating.
The company’s UCP segment was up 9.9% year-on-year, well below the brokerage firm’s estimate of 18%. UCP’s margins fell 522 basis points to 10.6%. Additionally, Voltas’ fourth quarter results were also a failure overall; the loss of ~500 basis points in RAC market share YoY to ~18% in March, which management attributed to intense competitive intensity in South India, led to the loss – mentioned the society. Considering the performance, the company’s EBITDA margins declined sharply by 268 basis points year-on-year to 9.8% due to lower gross margins amid commodity inflation and increased competitive intensity . However, margins in the EMPS segment were relatively better at 6.9%. Management said it had taken steps to regain lost market share and aim to reach prior levels by June 22.
Emkay Global said: “Our channel checks suggest Voltas’ share was also low on April 22. Margins are expected to remain suppressed as VOLT attempts to regain share. We have reduced FY22 revenue/EBITDA. 24E by 4-7% due to lower growth in EMPS and margin compression in UCP We are also reducing our multiple for UCP to 43x from 45x on higher CoE Hold hold with SoTP based TP Jun’24E revised by Rs 1,000 (Rs 1,150 earlier).”
The stocks above were selected from Emkay Global’s brokerage report. Investing in stocks presents a risk of financial loss. Investors should therefore exercise caution. Greynium Information Technologies, the author, and the brokerage are not responsible for any losses caused as a result of decisions based on the article.