PVR Inox Stock Has Buy Rating Despite Posting Losses For Q4FY23

Jinesh Joshi, an analyst at leading stock-broking firm Prabhudhas Lilladher, has informed investors that there is a 'Buy' rating assigned on the stock of leading cinema exhibitor PVR Inox Ltd despite reporting losses for Q4FY23. The company on Monday posted a consolidated net loss of Rs 333.99 crore for the fourth quarter that ended on March 31, 2023.

The top line of PVR Inox increased by 113% YoY to Rs 11,432 million below the brokerage firm's expectation of Rs 11,824 million. It was due to a lower base buoyed by good content with movies like Pathaan, Tu Jhoothi Main Makkaar, Varisu, Thunivu and Waltair Veerayya clocking revenue upwards of Rs 1 billion. The footfalls also increased 113% YoY 31 million, a million higher than expected, but were 6% lower than 4QFY20, comparable to the pre-Covid quarter.

The gross ATP stood at Rs 239 higher than the expected Rs 238, it was up 3% YoY on proforma numbers assuming consolidation with Inox in the base quarter. The F&B SPH stood at Rs 119 below the estimate of Rs 122, but up 13% YoY on proforma numbers, assuming consolidation with Inox in the base quarter, according to Joshi.

The analyst, in his results note, mentioned that the company Ind-AS adjusted EBITDA stood at Rs 54 million, below the estimate of Rs 203 million and also against Rs 1,281 million recorded in 3QFY23. But it was up as compared to Ind-AS adjusted EBITDA loss of Rs 342 million reported in Q4FY22.

The net loss of Ind-AS adjusted stood at Rs 2,857 million, it was more than what the analyst had projected Rs 564 million to Rs 838 million, and against an adjusted loss of Rs 956 million in 4QFY22.

As per the analyst, "the loss was higher than our estimate as PVR migrated to a lower tax regime of 25% resulting in write down of MAT credit (and reinstatement of DTA). It has resulted in a higher tax charge of Rs 1,343 million."

Joshi also stated in the note that currently, "we have a BUY rating on the stock with a target price of Rs 2,096 per share."

Share price movement

The current market price of Inox PVR stock is Rs 1,433.45 per share, which has declined by 2.12% on an intraday basis. The share price of the company has fallen by 19.11% in the last one year but in the last three years, it has increased by 71.1%. The 52-week high stands at Rs 2,211.55 and the low is at Rs 1,404 per share.

Disclaimer

The stock has been picked from the brokerage report of Prabhudas Lilladher. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.