PVR-INOX Q2 Results Review - G.O.A.T New And Re-Releases Paved Way To Robust Staging: IDBI Capital

IDBI Capital Report

PVR-INOX Ltd. reported strong Q2 performance on the back of increase in net box office collection (led by increase in Bollywood, regional and Hollywood movies i.e. 91% increase in collections QoQ).

Management expects occupancy level (~26% as of Q2 FY25) to improve over the next 12-15months, supported by the recovery in quantity and quality of films which would surpass pre-Covid levels only if people speculates that there are more number of mid and high budget films in pipeline.

Expansion of the advertisement revenue will boost the overall revenue growth too. In addition to that, company’s new partnership with Devyani international “Treat Junction” is set to open its 1st food-court in Dec-24 which would help in pre-ticketing revenue.

This gives us confidence on the management’s outlook for revenue growth and reducing fixed cost by operating more on FOCO models (15% of new screens).

We remain positive on a longer term perspective, hence upgrading the target price to Rs. 1,800 versus previous Rs 1,585 (15 times FY26E enterprise value/Ebitda) with maintaining our rating to Hold due to recent run-up in price.

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