Shares of PVR, a leading multiplex chain operator, have rallied 41.10 per cent so far in 2022. The stock gained by 49.79 per cent from its 52-week low of ₹1,224. However, over a 3-year period, stocks gave a merely 12.73% return as compared to the Nifty Midcap 100, which gave a return of 49.9%.
The exhibition sector took a huge hit during the pandemic. Cinemas and movie theatres have been closed to varying degrees around the world. During March 2020, shares of the company fell 42% in just one month.
However, in the last one year, the stock has outperformed by gaining 30.92 per cent, as compared to a 0.18 per cent fall in the benchmark Nifty50.
The market capitalization of PVR stood at ₹1,28,856.2 crore. It has a negative P/E of 19.59 and an EPS of 52.91.
Meanwhile, the PVR-Inox merger proposal has received approval from SEBI and stock exchanges, three months after the merger announcement, ET reported.
The Competition Commission of India (CCI) has not raised any objections to the merger in the last three months, contrary to expectations on the street.
Furthermore, the two multiplex owners are to get clearance from the National Company Law Tribunal (NCLT).
PVR currently has 871 screens spread across 181 properties in 73 cities, while INOX has 675 screens spread across 160 properties in 72 cities. PVR has a stronger presence in the north, west, and south, while INOX has a larger presence in the east, according to research reports.
The company reported a consolidated net loss of ₹105.49 crore for the fourth quarter ended March 2022. It had posted a net loss of ₹289.21 crore in the January-March quarter a year ago.
Revenue from operations rose by nearly three-fold to ₹537.14 crore as against ₹181.46 crore in the corresponding quarter last fiscal.
Company total expenses were at ₹731.17 crore, up 43.91 per cent in Q4/FY 2021-22 as against ₹508.07 crore in the year-ago quarter.
Axis Securities has a 'BUY' call on PVR with a target price of ₹1985, implying an 8.50 per cent potential upside from the June 27 closing price.
An average of 27 analysts polled by MintGenie have a 'buy' call on the stock.
Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of MintGenie.
