NSEI:PVR

Stock Analysis Report

Executive Summary

PVR Limited, a theatrical exhibition company, engages in the exhibition, distribution, and production of movies.


Snowflake Analysis

Reasonable growth potential with acceptable track record.

Share Price & News

How has PVR's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PVR has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.0%

PVR

1.3%

IN Entertainment

0.2%

IN Market


1 Year Return

18.9%

PVR

-0.8%

IN Entertainment

7.2%

IN Market

Return vs Industry: PVR exceeded the Indian Entertainment industry which returned -3.3% over the past year.

Return vs Market: PVR exceeded the Indian Market which returned 6.7% over the past year.


Shareholder returns

PVRIndustryMarket
7 Day2.0%1.3%0.2%
30 Day4.8%5.0%2.1%
90 Day6.6%4.3%5.7%
1 Year19.1%18.9%-0.1%-0.8%9.2%7.2%
3 Year51.5%50.9%-4.8%-6.2%33.1%26.2%
5 Year181.3%179.3%20.4%19.6%35.6%23.5%

Price Volatility Vs. Market

How volatile is PVR's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is PVR undervalued compared to its fair value and its price relative to the market?

55.75x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PVR (₹1930.2) is trading above our estimate of fair value (₹352.58)

Significantly Below Fair Value: PVR is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: PVR is poor value based on its PE Ratio (56x) compared to the Entertainment industry average (23.7x).

PE vs Market: PVR is poor value based on its PE Ratio (56x) compared to the Indian market (13.8x).


Price to Earnings Growth Ratio

PEG Ratio: PVR is poor value based on its PEG Ratio (1.8x)


Price to Book Ratio

PB vs Industry: PVR is overvalued based on its PB Ratio (9x) compared to the IN Entertainment industry average (0.7x).


Next Steps

Future Growth

How is PVR forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

31.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PVR's forecast earnings growth (31.7% per year) is above the savings rate (6.5%).

Earnings vs Market: PVR's earnings (31.7% per year) are forecast to grow faster than the Indian market (19.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: PVR's revenue (12.8% per year) is forecast to grow faster than the Indian market (11.3% per year).

High Growth Revenue: PVR's revenue (12.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PVR's Return on Equity is forecast to be low in 3 years time (18.2%).


Next Steps

Past Performance

How has PVR performed over the past 5 years?

23.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PVR has high quality earnings.

Growing Profit Margin: PVR's current net profit margins (4.6%) are lower than last year (5.6%).


Past Earnings Growth Analysis

Earnings Trend: PVR's earnings have grown significantly by 23.1% per year over the past 5 years.

Accelerating Growth: PVR's earnings growth over the past year (13.2%) is below its 5-year average (23.1% per year).

Earnings vs Industry: PVR earnings growth over the past year (13.2%) exceeded the Entertainment industry 12.9%.


Return on Equity

High ROE: PVR's Return on Equity (16.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is PVR's financial position?


Financial Position Analysis

Short Term Liabilities: PVR's short term assets (₹5.1B) do not cover its short term liabilities (₹11.9B).

Long Term Liabilities: PVR's short term assets (₹5.1B) do not cover its long term liabilities (₹46.6B).


Debt to Equity History and Analysis

Debt Level: PVR's debt to equity ratio (132.1%) is considered high.

Reducing Debt: PVR's debt to equity ratio has increased from 115.8% to 132.1% over the past 5 years.

Debt Coverage: PVR's debt is well covered by operating cash flow (54.1%).

Interest Coverage: PVR's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet

Inventory Level: PVR has a high level of physical assets or inventory.

Debt Coverage by Assets: PVR's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is PVR's current dividend yield, its reliability and sustainability?

0.10%

Current Dividend Yield


Dividend Yield vs Market

company0.1%marketbottom25%0.6%markettop25%2.3%industryaverage0.6%forecastin3Years0.1%

Current dividend yield vs market & industry

Notable Dividend: PVR's dividend (0.1%) isn’t notable compared to the bottom 25% of dividend payers in the Indian market (0.56%).

High Dividend: PVR's dividend (0.1%) is low compared to the top 25% of dividend payers in the Indian market (2.31%).


Stability and Growth of Payments

Stable Dividend: PVR is not paying a notable dividend for the Indian market, therefore no need to check if payments are stable.

Growing Dividend: PVR is not paying a notable dividend for the Indian market, therefore no need to check if payments are increasing.


Current Payout to Shareholders

Dividend Coverage: PVR is not paying a notable dividend for the Indian market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PVR's dividend in 3 years as they are not forecast to pay a notable one for the Indian market.


Next Steps

Management

What is the CEO of PVR's salary, the management and board of directors tenure and is there insider trading?

2.7yrs

Average management tenure


CEO

Ajay Bijli (52yo)

0yrs

Tenure

₹162,573,110

Compensation

Mr. Ajay Bijli, B.Com, OPMP serves as Managing Director at Cinemax India Limited since January 30, 2013. Mr. Bijli served as Director of iPic Entertainment Inc. since January 24, 2018 until July 20, 2018.  ...


CEO Compensation Analysis

Compensation vs Market: Ajay's total compensation ($USD2.29M) is above average for companies of similar size in the Indian market ($USD641.04K).

Compensation vs Earnings: Ajay's compensation has increased by more than 20% in the past year.


Management Age and Tenure

2.7yrs

Average Tenure

47yo

Average Age

Experienced Management: PVR's management team is considered experienced (2.7 years average tenure).


Board Age and Tenure

7.0yrs

Average Tenure

58yo

Average Age

Experienced Board: PVR's board of directors are considered experienced (7 years average tenure).


Insider Trading

Insider Buying: PVR insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Sell₹2,464,85208 Nov 19
Ashawani Handa
EntityIndividual
Shares1,400
Max Price₹1,760.61
Sell₹966,08227 Sep 19
Gautam Dutta
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares509
Max Price₹1,898.00
Sell₹3,202,02027 Sep 19
Ashawani Handa
EntityIndividual
Shares1,700
Max Price₹1,886.67
Sell₹2,251,96625 Sep 19
Sanjai Vohra
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares1,250
Max Price₹1,801.57
Sell₹23,110,70025 Sep 19
Gautam Dutta
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares12,650
Max Price₹1,826.93
Sell₹8,733,30025 Sep 19
Ashawani Handa
EntityIndividual
Shares4,800
Max Price₹1,819.44
Sell₹37,766,63125 Sep 19
Nitin Sood
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares20,606
Max Price₹1,852.51
Sell₹2,013,53516 Sep 19
Sanjai Vohra
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Independent Director
Shares1,250
Max Price₹1,610.83
Sell₹44,397,63601 Aug 19
Ajay Bijli
EntityIndividual
Role
Co-Chief Executive Officer
Promoter
Shares28,000
Max Price₹1,585.63
Buy₹44,308,88501 Aug 19
Aamer Bijli
EntityIndividual
Shares28,000
Max Price₹1,582.46
Sell₹18,100,00023 May 19
Gautam Dutta
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares10,000
Max Price₹1,810.00
Sell₹26,967,18021 May 19
Nitin Sood
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares15,000
Max Price₹1,797.81

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Ajay Bijli (52yo)

    Promoter

    • Compensation: ₹162.57m
  • Renaud Palliere (47yo)

    Chief Executive Officer of International Development

    • Compensation: ₹40.00k
  • Sanjeev Kumar (47yo)

    Promoter

    • Tenure: 16.5yrs
    • Compensation: ₹106.28m
  • Kamal Gianchandani (47yo)

    Chief of Strategy

    • Compensation: ₹2.05m
  • Gautam Dutta (49yo)

    Chief Executive Officer

    • Tenure: 1yrs
    • Compensation: ₹2.05m
  • Pankaj Dhawan

    Compliance Officer & Company Secretary

    • Tenure: 2.7yrs
    • Compensation: ₹5.12m
  • Nitin Sood (44yo)

    Chief Financial Officer

    • Compensation: ₹55.55m
  • Rahul Singh

    Chief Operating Officer of PVR Cinemas

    • Tenure: 3.3yrs
  • Sunil Kumar

    Chief Human Resource Officer

    • Rajat Tyagi

      Chief Information Officer


      Board Members

      • Vishal Mahadevia (46yo)

        Non-Executive Non-Independent Director

        • Tenure: 2.7yrs
      • Renuka Ramnath (58yo)

        Non-Executive Non Independent Director

        • Tenure: 7yrs
      • Ajay Bijli (52yo)

        Promoter

        • Compensation: ₹162.57m
      • Deepa Harris (61yo)

        Independent Woman Director

        • Tenure: 0.8yrs
      • Vikram Bakshi (64yo)

        Non Executive Independent Director

        • Tenure: 14.3yrs
        • Compensation: ₹850.00k
      • Sanjeev Kumar (47yo)

        Promoter

        • Tenure: 16.5yrs
        • Compensation: ₹106.28m
      • Sanjai Vohra (59yo)

        Non-Executive Independent Director

        • Tenure: 8.3yrs
        • Compensation: ₹2.40m
      • Pallavi Shroff

        Independent Director

        • Tenure: 0.3yrs

      Company Information

      PVR Limited's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: PVR Limited
      • Ticker: PVR
      • Exchange: NSEI
      • Founded: 1995
      • Industry: Movies and Entertainment
      • Sector: Media
      • Market Cap: ₹98.206b
      • Shares outstanding: 51.33m
      • Website: https://www.pvrcinemas.com

      Number of Employees


      Location

      • PVR Limited
      • Block A, Building No. 9
      • 4th Floor
      • Gurugram
      • Haryana
      • 122002
      • India

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      532689BSE (Mumbai Stock Exchange)YesEquity SharesININRJan 2006
      PVRNSEI (National Stock Exchange of India)YesEquity SharesININRJan 2006

      Biography

      PVR Limited, a theatrical exhibition company, engages in the exhibition, distribution, and production of movies. The company is also involved in the in-house advertisement, sale of food and beverages, bowling, and restaurant businesses. As of January 13, 2020, it operated a network of 825 screens at 173 properties in 71 cities in India and Sri Lanka. The company was founded in 1995 and is based in Gurugram, India. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 12:57
      End of Day Share Price2020/01/20 00:00
      Earnings2019/09/30
      Annual Earnings2019/03/31


      Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.