Update on the Indian Equity Market:
\nOn Tuesday Nifty closed 0.05% higher at 11472. Among the sectoral indices, PSU Bank (+1.3%), Bank (+1.1%), and Financial Services (+0.9%) closed higher. Realty (-2.1%), Metal (-0.7%), and Pharma (-0.6%) sectors closed lower. Tata Motors (+5.3%), Bajaj Finance (+4.8%), and SBI (+3.4%) closed on a positive note. GAIL (-1.7%), NTPC (-1.5%), and Sun Pharma (-1.4%) were among the top losers.<\/p>\n
Excerpts from an interview of Mr. Ajay Bijli, CMD, PVR with ET Now dated 24th August 2020:
\n\u2022\tRevenues are badly affected as theatres are closed. Theatres were asked first to close down and now it will be one of the last few activities to be allowed to resume.<\/p>\n
\u2022\tCinemas have closed down all over the world, but a lot of help was also given by the governments in various countries. But here in India the sector didn\u2019t get any support.<\/p>\n
\u2022\tPVR is ready to resume its operations. The people of India have always loved to go out and watch films.<\/p>\n
\u2022\tMr Bijli thinks five to six months of being deprived will not change people old habit of decade.<\/p>\n
\u2022\tIn some malls of Delhi, footfall is already back to 90% of pre-covid level during weekends despite no cinema.
\n\u2022\tOTT platform is a concern for PVR but in a country like India with 1500 films releasing, if 10-20 movies have gone in shutdown, it is fine.<\/p>\n
\u2022\tThe company will focus on 3 buckets \u2013 rescue, revival and reinvention.<\/p>\n
\u2022\tAs a rescue plan, PVR did rights issue. The company will focus on cost cutting and manage developer related issues. Revival will happen when the government gives permission to open and with new SOPs being ready comes reinvention mode.<\/p>\n
\u2022\tSurvey suggest that youngsters are eager to come back.<\/p>\n
\u2022\tThe company will continue with expansion. If there was no shut down, PVR would have done 100 screens last fiscal, but finished with 88 the company got licenses for the rest of the 12. Once the restrictions are lifted there will be opening of 15-20 new screens.<\/p>\n
\u2022\tThe Mumbai drive in theater was on cards from a long period of time, the core business is cinemas and drive in model is yet to be tested.<\/p>\n
Consensus Estimate: (Source: market screener website)
\n\u2022\tThe closing price of PVR was \u20b9 1,324\/- as of 25-August-2020. It traded at NM\/ 38x\/28x the consensus Earnings per share estimate of \u20b9 -80.9\/35.3\/47.5 for FY21E\/ FY22E\/FY23E respectively. (NM- Not Meaningful)
\n\u2022\tThe consensus average target price for PVR is \u20b9 1,314\/- which implies a PE multiple of 28x on FY23E EPS of \u20b9 47.5\/-
\nDisclaimer: \u201cThe views expressed are for information purposes only. The information provided herein should not be considered as investment advice or research recommendation. The users should rely on their own research and analysis and should consult their own investment advisors to determine the merit, risks, and suitability of the information provided.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"
Update on the Indian Equity Market: On Tuesday Nifty closed 0.05% higher at 11472. Among the sectoral indices, PSU Bank (+1.3%), Bank (+1.1%), and Financial Services (+0.9%) closed higher. Realty (-2.1%), Metal (-0.7%), and Pharma (-0.6%) sectors closed lower. Tata Motors (+5.3%), Bajaj Finance (+4.8%), and SBI (+3.4%) closed on a positive note. GAIL (-1.7%), […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1],"tags":[517,518],"_links":{"self":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1314"}],"collection":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/comments?post=1314"}],"version-history":[{"count":1,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1314\/revisions"}],"predecessor-version":[{"id":1315,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/posts\/1314\/revisions\/1315"}],"wp:attachment":[{"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/media?parent=1314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/categories?post=1314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.assetmultiplier.co.in\/blog\/wp-json\/wp\/v2\/tags?post=1314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}