Cmp – 952
52Wk HIGH/LOW- 2125/952
5 year HIGH/LOW – 2125/650
Market cap – 5000 cr
Book Value – 292
Dividend Yield – 0.21 %
Face value – 10
💢The market correction and Covid-19 led shutdowns have led to a notable correction in the stock prices of both PVR and Inox due to a lack of clarity on the extent of the shutdown. However, we believe that current prices factor in a potential wash out in Q1FY21 as well.
💢There would be less footfalls in cinemas for next 3 to 6 months atlest.In wroste case scenerio next 1 to 2 qtrs would be painful, But beyond that things can start getting back to normal.Q1fy21 would be completely wash out
💢Normalcy can be EXPECTED from Q2FY21, with a rebound in footfalls and a gradual recovery in ad revenues, assuming Covid-2019 related issues get resolved by Q2FY21,Delayed in content supply due to the postponement of shooting schedules can be a Risk.
FY21/22E EBITDA can be effected by 15%-28% for PVR and Inox.
💢The multiplex industry, in the past, has not seen any impact on footfalls due to slow economic growth, as consumers have limited options outside of home entertainment. In our view, the bounce-back will be equally strong once Covid-2019 issues get resolved. The revival in ad revenues might take longer with overall economic growth. Increasing penetration of multiplexes in the country beyond metros is also aiding growth in footfalls as consumers are increasingly watching Hollywood and regional alongside Bollywood content. Social media awareness has also showcased the power of content, with ‘small-star’ movies performing exceptionally well while poor content of renowned stars relatively underperforming. PVR and Inox are aggressively adding screens, while screen additions of Cinepolis and Carnival have moderated in the last two years.
Stock can futher slide only BELOW 900 or can bounce back smartly.Below 900 can Test 790/750 also.
Disc – All views expressed are personal and only for Educational and study purpose.consult your financial advisor before investing or taking any position based on above article. This in not any Buy/Sell Recommendation.Its purely for Educational purpose only.