Ecstasy Investment Management Services

Equity Research Report

TEAM ECSTASY -------------------------------------------Closing Price as on 02 Aug 2013 NSE: 343.9 Price Target:
52 Week H/L 3-Mth Avg. Volume Face Value Market-Cap Shares Outstanding

Recommendation: BUY

NSE Code PVR BSE Code 532689 INE191H01014 ISIN No. Industry/Sector Speciality Retail

PVR LTD.

BSE: 404.98
Stock Information

341.1

Promoter FII DII Public Total

31.04 13.53 19.63 35.8 100

10 1351 Cr

Technically PVR is showing a Strong Upward Trend which is guided by 100 SMA. Stock is likely to surge further as long it will hold the trend. PVR has come back to its previous High forming a Saucer like Structure. Any Breakout of the pattern can make the Stock move towards Rs. 560.

About the Company:

PVR has set new benchmarks in the cinema exhibition business including establishment of the first largest 11 screen multiplex in the country, Gold Class Cinema, luxury cinema, IMAX theatres and ECX (Enhanced Cinema Experience). The Company pioneered the multiplex revolution in the country The Company Commenced its journey in April 1995 pursuant to a Joint Venture Agreement between Priya Exhibitors Pvt. Ltd. and Village Roadshow Limited, Australia The Company through its wholly owned subsidiary, PVR Pictures Limited is involved in distribution of Indian and International films across India and also supports independent filmmakers by releasing their films under the PVR Directors Rare banner. Its other new subsidiary PVR Leisure Limited, a Joint Venture between PVR Ltd and L Capital Eco Limited, Mauritius focuses on rolling out F&B and retail entertainment concepts including Hospitality and Leisure / Gaming. The Companys existing retail entertainment venture PVR bluO Entertainment Limited, a JV with Major Cineplex Group, Plc of Thailand currently encompasses Bowling Alleys, Karaoke rooms, Gaming Lounges .

Ecstasy Investment Management Services

Equity Research Report

Risk Factor: High Debt is the point of concern for PVR. The Company needs high investment for expansion. As PVR is involved in Entertainment & Luxury Business, So their growth is dependent on the Economic Condition & Consumers Financial Condition. Investment Rational: Due to favourable demographics (75% of the countrys
population is below the age of 35) and economic conditions in India, coupled with consumers willing to spend more on a variety of leisure and entertainment services, the filmed entertainment business is set to grow in the years Today PVR is the dominant leader with 30-35% share of box office collections for Hollywood movies in India & 20-25% share of Bollywood movies PVR is having 383 screens with 89 properties in 36 cities now. They are targeting 437 screens, 103 properties by end of 2013 which is a growth of about 30% in their Fixed assets. CRISIL has assigned its CRISIL A+/Stable rating to the Rs. 230 Crores Non Convertible Debentures (NCD) program of PVR Limited. Our food and beverage (F&B) has been a very important contributor. Our F&B part has grown by 87 percent. Our sponsorship revenues as well have grown by about 60 percent in the first quarter. Cinemax & PVR merger is going to take place shortly Many Big Budget Mega starrer movies are in the pipe line for coming 2-3 months expected to drag large No. of audience which will boost PVRs business.
Chennai Express Once upon a Time in Mumbai Escape Plan (PVR Pictures Ltd.) Phata Poster Nikla Hero Boss Singh Sahab The Great Satyagraha Jobs Madras Cafe, Dhoom3, Krish3 Sharukh khan Akshay Kumar Sylvester Stallone, Arnold Schwarzenegger Directed by Raj Kumar Santoshi Akshay Kumar Sunny Deol Amitabh Bachchan & Ajay Devgan, Auto Biography of steve Jobs Mega Starrer

Ecstasy Investment Management Services

Equity Research Report

Yearly Financials ( in Rs.Crores)

Particulars Income Expenditure EBITDA EBIDTA Margin Depreciation EBIT Interest EBT Tax PAT PAT Margin(%) Issued Shares EPS P/E 2008-09 278.7 2009-10 2010-11 2011-12 2012-13 2013-14 E 280.65 361.06 481.43 674.4 802.54 248.91 31.74 11.3% 21.62 10.12 9.86 0.26 0.01 0.25 0.1% 2.56 0.10 298.1 62.96 17.4% 24.11 38.85 15.96 22.89 6.55 16.34 4.5% 2.7149 6.02 397.62 83.81 17.4% 31.36 52.45 17.96 34.49 6.38 28.11 5.8% 2.5903 10.85 565.12 109.28 16.2% 42.95 66.33 25.46 40.87 -10.65 51.52 7.6% 2.5903 13.84 22.16 673.53 129.01 16.1% 40.70 88.31 25.2 63.11 15.78 47.33 5.9% 2.5903 18.28 22.16

228.49 50.21 18.0% 18.94 31.27 11.43 19.84 7.19 12.65 4.5% 2.3 5.50

Outlook & Valuation: At CMP of Rs. 343.9, PVR is trading at

22.16x & EPS of Rs. 13.84/ share. We anticipate the stock to register an EPS of Rs. 18.28/share by FY14E. With the same forward P/E we project a price target of Rs. 404.98 for PVR by coming 8 Months.
Ecstasy Investment Management Service - Research Team
Mr. Anik Mitra Mr. Sayan Goswami Mr. Abishkar Bhattacharjee Upasana Apartment , 98(56), S.N. Banerjee Road, Behind Charnak Fari, Barrackpore, Kolkata-700122. India. Contact no: +913330863076, +919874135228 Web: www.eimsindia.com

Disclaimer:
The information contained herein has been obtained from sources which are believed to be reliable,but the accuracy or completeness of the contents cannot be guaranteed. Any opinions and/or projections expressed herein are solely of the writer and are subject to change without notice. This report under no circumstances is to be construed as an offer to sell or the solicitation of an offer to buy any securities. This report contains forward-looking statements include expressions of belief, expectation, contemplation, estimation and other expressions not relating to historical facts and circumstances. These forward-looking statements are subject to numerous risks and uncertainties that may cause such statements not to prove accurate. Any recommendations contained in this report may not be suitable for all investors. Any investment recommendations in this report contain a high degree of risk and a prospective investor is encouraged to review in detail the companys prospectus, SEC filings, and/or other additional information. Any projections or estimates herein made assume certain economic and industry conditions and parameters subject to change. Neither Ecstasy Investment Management Services, nor its directors, employees or affiliates shall be liable for any loss or damage that may arise from or in connection with the use of this information.