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PVR Ltd. Stock Analysis

Mid Cap
Evaluated by 1788 users | BSE: 532689 | NSE: PVR |
Film Production, Distribution & Entertainment
PVR, incorporated in 1995, is engaged in business of film exhibition. The company operates other business such as providing content, film distribution and entertainment park through its subsidiaries.The company came into existence with a joint venture between Priya Exhibitors and Village...
1. Right Stock
Very Good
2. Right Price
3. Right Time

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
PVR Ltd. has performed well in some of the past ten years indicating its past ten year financial track record is somewhat good
Value Creation
Value Creation Index Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 6.95%8.08%9.6%10.57%6.63%12.27%9.5%9.86%12.09%13.22%
Value Creation Index -0.43-0.33-0.21-0.13-0.450.01-0.22-0.190.000.09
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 3514766701,2711,3841,7202,0022,2463,0393,284
Y-o-Y Gr. Rt.-35.7%40.8%89.7%8.9%24.3%16.4%12.2%35.3%8.1%
Adjusted EPS (Rs.) 6.078.4312.8712.424.1722.2721.1425.6440.175.47
Y-o-Y Gr. Rt.-38.9%52.7%-3.5%-66.4%434.1%-5.1%21.3%56.7%-86.4%
Book Value per Share (Rs.) 104.08103.64159.2792.8393.83169.32200.21221.25308.75278.79
Adjusted Net Profit 16.822.251.95217.610610112219128.6
Net Op. Cash Flow (Rs. Cr.) 39.231.3112209145334332401839819
Debt to Cash Flow from Ops 3.375.393.292.875.191.972.472.071.531.58
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
PVR Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 28.2%18.9%17.9%8.1%
Adjusted EPS -1.2%5.6%-36.3%-86.4%
Book Value per Share 11.624.311.7-9.7
Share Price 28.7% 9.4% 0.5% -26.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 6.277.9311.3310.054.4616.7511.0612.1515.11.95
Operating Profit Margin (%) 13.214.3714.9715.4513.415.7714.5817.0618.9532.37
Net Profit Margin (%) 4.784.677.754.091.276.155.035.436.290.87
Debt to Equity 0.560.720.571.541.90.820.860.790.870.89
Working Capital Days 152137109811038880838090
Cash Conversion Cycle -24-19-26-33-39-31-29-30-34-25
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 18.79%
Institutions 64.65%
Non-Institutions 16.56%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of PVR Ltd. and arrived at the following conclusion:

Past 10 year's financial track record indicates that PVR Ltd. is a average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of PVR Ltd.'s performance infers:

PVR Ltd. earnings have grown by 5.6%, whereas share price has appreciated 9.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of PVR Ltd. share prices over the last 10 years. Here is what we found out:

PVR Ltd. share price has appreciated 24.9% annually over the past ten years.

PVR, incorporated in 1995, is engaged in business of film exhibition. The company operates other business such as providing content, film distribution and entertainment park through its subsidiaries.

The company came into existence with a joint venture between Priya Exhibitors and Village Roadshow, an Australian based company that is one the largest exhibition companies in the world with more than 1,000 screens under operation. This 60:40 joint venture led to formation of

PVR, incorporated in 1995, is engaged in business of film exhibition. The company operates other business such as providing content, film distribution and entertainment park through its subsidiaries.

The company came into existence with a joint venture between Priya Exhibitors and Village Roadshow, an Australian based company that is one the largest exhibition companies in the world with more than 1,000 screens under operation. This 60:40 joint venture led to formation of Priya Village Roadshow (PVR). The company was first to introduce the concept of multiplexes in India. With the help of Village Roadshow’s international experience, the company launched of PVR Anupam in Saket, India’s first multiplex in the year 1997.

From then PVR initiated many path breaking innovations in the industry from launching in Bangalore the largest 11 screen multiplex in the country in 2004 to introducing Gold Class Cinema. In November 2002, Village Roadshow divested its investment and sold the entire stakes to Priya Exhibitors. The name was changed to PVR.

Currently, the company has achieved the status of being India’s largest cinema chain. Its geographically diverse cinema circuit in India consists of 42 Cinemas with 184 screens spread over 24 different cities covering major markets across the length and breadth of the country: Delhi, Faridabad, Gurgaon, Ludhiana, Jalandhar, Ghaziabad, Mumbai, Kolkata, Bangalore, Hyderabad, Chennai, Lucknow, Indore, Aurangabad, Baroda, Allahabad, Ahmedabad, Udaipur, Chandigarh, Surat, Latur, Nanded, Ujjain, Nagpur and Raipur. The company also conducts CSR programmes through ‘PVR Nest’ that is engaged in upliftment of street children through various initiatives.

Businesses

Distribution- Besides cinema exhibition, the company is also involved in film distribution through its subsidiary PVR Pictures. Since 2001 the company has distributed about 150 English movies and 75 Hindi and other regional language movies. The company recently completed a movie “Shanghai” directed by Dibakar Banerjee starring Abhay Deol and Emran Hashmi.

Retail- CR Retail Malls (India) a subsidiary of the company is engaged in business of retailing and creating an entertainment destination in Mumbai. CR Retail Malls (India) Limited operates the 7 screen Multiplex at “The Phoenix Mills Compound” at Lower Parel, a prime retail and entertainment destination in Mumbai. On 5th May, 2011, PVR Ltd. entered into an arrangement with JM Financial group of Companies for sale of equity shares of CRR. Under the terms of sale of entire equity share of CRR, PVR Ltd. has realized Rs. 100 Crores. PVR has also entered into a lease agreement with CRR to continue to operate the multiplex property on a long term lease basis.

Entertainment park- The company has entered in joint venture with Major Cineplex Group, Thailand’s largest cinema chain operator to form PVR bluO Entertainment (PBEL). This 51:49 joint venture will set up and operate Bowling Alleys, Karaoke Centers and Ice Skating Rinks across India. Presently the company operates India’s largest bowling alley center in Ambience Mall, Gurgaon. The center has been able to establish itself as a premier leisure and entertainment destination for consumers in NCR.

The company also owns another subsidiary namely Sunrise Infotainment that operates six screens Multiplex Project at Oberoi Mall.

The Board of Directors of the company in the meeting held on 27th May, 2011 approved buy back of Company’s own Equity Shares from the Stock Exchanges for a sum not exceeding Rs. 26.21 Crores i.e., 10% of the paid up Equity Share Capital and Free Reserves at a price not exceeding Rs. 140 each equity share of face value of Rs. 10 each in accordance with the applicable provisions under the securities and exchange board of India Buy Back of Securities regulations 1998.

In August 2012, L Capital Eco Ltd, the PE arm of Louis Vuitton Moët Hennessy (LVMH), the world’s biggest luxury goods group and a subsidiary of the $ 640-million global private equity (PE) firm L Capital Asia, agreed to invest Rs 108 crore in lieu of equity stake in PVR Ltd.

Milestones

2010
PVR Opens another Multiplex in Raipur, Chhattisgarh
PVR Opens another Multiplex at Allahabad, U.P.
PVR Opens two Multiplexes at Ghaziabad, U.P.
PVR mergers with Leisure World Private Limited (LWPL)

2011
Imax and PVR Cinemas sign Four Theatre Deal in India
PVR Opens Multiplex at The Celebration Mall situated at Udaipur
Opening of another Multiplex at "The RahulRaj Mall" situated at Surat
Opening of another Multiplex at "Ambiance Mall", Vasant Kunj, New Delhi

2012
Opening of Multiplex at "Avani Riverside Mall", Howrah
Opening of Multiplex at "Nanded"
PVR opens multiplex in Bilaspur, Chattisgarh
PVR opens 8 screens multiplex in Mumbai
Opening of Multiplex at "ORION, Bangalore"

Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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