PVR Inox Gains 3% As Anand Rathi Says Kalki, Stree 2 To Drive Strong Q2 Revenue Growth

Shares of PVR Inox Ltd. rose nearly 3% after Anand Rathi, an Indian brokerage, shared a note on the company, maintaining a 'buy' rating, with a target price of Rs 2,065 apiece, implying a 25% upside from the stock's previous close of Rs 1,655 per share.

The brokerage expects a sequential improvement during the second quarter of fiscal 2025 following a muted Q1, driven by better advertising income, which has been lagging behind pre-Covid levels.

Several blockbusters, including Kalki 2898 AD, Stree 2, Deadpool & Wolverine, and Raayan, will contribute to a strong Q2 revenue, the note said. 

The third quarter is expected to be the company's best quarter, with franchise films such as Pushpa 2, Singham Returns, Sitaare Zameen Par, and Bhool Bhulaiyaa 3 leading the way. 

PVR Inox plans to add 110-120 gross screens in fiscal 2025, with net screen additions of around 50-60, while continuing to reduce debt and adopt an asset-light model.

PVR Inox stock rose as much as 2.96% during the day to Rs 1,704.15 apiece on the NSE. It was trading 2.51% higher at Rs 1,696.65 apiece, compared to a 0.23% rise in the benchmark Nifty 50 as of 1:46 p.m. 

It has fallen 1% in the last 12 months and increased 2.05% year-to-date. The total traded volume so far in the day stood at 2.2 times its 30-day average. The relative strength index was at 75.97.

Nineteen out of the 24 analysts tracking the stock have a 'buy' rating, three recommend a 'hold' and two suggest a 'sell', according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 3%.