Edelweiss Securities has recommended 'Buy' on PVR with target price of Rs 589 as against current market price (CMP) of Rs 536 in its report.

Commenting on the investment rationale, the stock broker said, ''In our recent meeting with Nitin Sood, CFO, PVR, he was optimistic about FY15 despite mediocre show in Q3FY14 and lacklustre initial two months of Q4FY14. In March 2014, PVR saw 20% YoY increase in footfalls led by hit movies like Queen and Shaadi Ke Side Effects. With Q4 being a seasonally weak quarter, we expect PVR to report after-tax loss for the quarter under review.

Incrementally, benefits arising from Cinemax acquisition will be more in terms of robust F&B and ad revenue growth. Company will benefit from huge expansion potential (in 2013, 5,000 multiplex screens opened in China, while India added 300), likely urban revival, partial shift of IPL outside India and a relatively stronger movie pipeline from June 2014. Also, post disappointing Q3FY14 performance the stock has corrected by 18%. Recommend 'Buy' on dips.''

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