Mehabe score: 4 G Factor: 3 Piotski Score: 3 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 3 and Piotski score of 3.
Description
PVR Limited (PVR) is India’s largest and most premium film exhibition Company. It pioneered the multiplex revolution in India by establishing the first multiplex cinema in 1997 at New Delhi and continue to lead the market with relentless focus on innovation and operational excellence to democratise big‑screen movie experience.Site:PVRMain Symbol:PVR
Stock trades at 1663.0, above its 50dma 1428.49. It also trades above its 200dma 1355.35. The stock remains bullish on techicals
The 52 week high is at 1662.20 and the 52week low is at 961.00
Price Chart
P/E Chart
Sales and Margin
Strengths
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Weakness
– Stock is trading at 5.52 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.45% over past five years.
-Promoter holding is low: 17.06%
– has a low return on equity of -12.19% for last 3 years.
-Earnings include an other income of Rs.459.85 Cr.
-Debtor days have increased from 27.32 to 40.01 days.
-Promoter holding has decreased over last 3 years: -3.19%
Competition
– The industry trades at a mean P/E of 25.6x. Saregama India trades at the industry’s max P/E of 58.72x. PVR trades at a P/E of x
– Industry’s mean G-Factor is 3.4 while the mean Piotski score is 8.0. PVR has a G-Factor of 3 and Piotski scoreof 3.
– Average 1 month return for industry is 6.9%. The max 1- month return was given by Inox Leisure: a return of 16.14 %
Quarterly Results
Sales for period ended Sep 2021 is Rs 120.0 cr compared to Rs 40.0 cr for period ended Sep 2020, a rise of 200.0%
Company reported negative operating profit of Rs -68.0 cr for period ended Sep 2021. For same period last year, operating profit was -85.0
The EPS for Sep 2021 was Rs -25.17 compared to Rs -36.11 for previous quarter ended Jun 2021 and Rs -31.02 for Sep 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 407.0 cr for period ended TTM vis-vis sales of Rs 280.0 cr for the period ended Mar 2021, a healthy growth of 31.2%. The 3 year sales cagr stood at -49.1%.
Operating margins expanded to -72.0% for period ended TTM vis-vis -120.0% for period ended Mar 2021, expansion of 4800.0 bps.
Net Profit reported at Rs -711.0 cr for period ended TTM vis-vis sales of Rs -748.0 cr for the period ended Mar 2021, rising 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has worsened on its Return on Equity (RoE) metric. The RoE on Last Year basis was -46.0% compared to -12.0% over the last 3 Years. – The stock has given a return of 41% on a 1 Year basis vis-vis a return of 10% over the last 3 Years. – The compounded sales growth on a TTM bassis is -87% vis-vis a compounded sales growth of -51% over the last 3 Years. – The compounded profit growth on a TTM basis is -244% vis-vis a compounded profit growth of % over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Sep 2021 fii holding stood at 37.83% vis-vis 38.19% for Jun 2021 – Public shareholding has remained largely constant. The Sep 2021 public holding stood at 19.13% vis-vis 18.36% for Jun 2021
Conclusion
– – Stock is trading at 5.52 times its book value
– has low interest coverage ratio.
-The company has delivered a poor sales growth of -31.45% over past five years.
-Promoter holding is low: 17.06%
– has a low return on equity of -12.19% for last 3 years.
-Earnings include an other income of Rs.459.85 Cr.
-Debtor days have increased from 27.32 to 40.01 days.
-Promoter holding has decreased over last 3 years: -3.19%
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 1428.49 and is trading at 1663.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
