This Media Stock Could Generate 22% Returns In 1-Year, Says Emkay Global
Broking firm Emkay Global has a "buy" call on the stock of PVR, with a
price target that is 22% higher from the current levels.
The brokerage has set a price target of Rs 2050 on the stock, which is
significantly higher than the current levels.
PVR: Performance sees improvement
According to Emkay Global, PVR's Q3FY23 performance improved on the back of better box-office performance.
Footfalls grew 21% QoQ, leading to 37% revenue growth.
Operational parameters - ATP and SPH - also improved on a sequential basis, after a disappointing Q2.
"Bollywood failed to live up to expectations in this quarter too, with only one movie performing well, while Hollywood and Regional cinema aided collections.
Outlook
Bollywood's performance remains worrisome, with only one movie managing to break the Rs1-billion barrier in the quarter.
With content quality not improving, audiences have become selective about visiting theatres.
Further, with ticket and F&B prices being 15 - 20% higher than pre-Covid levels, the overall experience has become expensive.
For subpar content, audiences now prefer to wait for movies to be telecast on OTT instead.
Consequently, footfalls continue to be below pre-Covid levels.