PVR-Inox Q3 Results Review - Improving Content Pipeline Will Drive Growth in Long Term: IDBI Capital

IDBI Capital Reports

PVR Inox Ltd. reported subdued Q3 FY24 numbers due to impact of world cup in first two months of the quarter. We expect Q4 to be subdued due to poor content pipeline.

Hence, we have revised our earning per share estimates downwards by 36% in FY24E. We have also revised our FY25E EPS estimates downwards by 25%. However, considering that the producers are changing content (which take 15-18 months) as per consumer preference, uptick in Hollywood content and improving occupancy trajectory we expect growth to bounce back in FY25E.

In addition, we expect full scale improvement in footfall, advertising revenues and merger benefits to be visible in coming quarters. This coupled with recent fall in price prompt us to maintain our 'Buy' rating on the stock with revised target price of Rs 1,820 (13 times FY26E Ebitda, introduced FY26E estimates, prior target price of Rs 2,015).

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