PVR-INOX - Stars Aligning For A Meaningful Re-Rating: ICICI Securities

ICICI Securities Report

We have believed that a weak content pipeline is to be blamed for the weak performance of the movie exhibition industry over the last year and not a structural shift in consumer behaviour towards OTTs, etc.

We think Q3 FY25E will likely to resolve investors’ concern on the above issue. Given the content line-up in Q3 FY25E, we think that PVR Inox Ltd. could post its strongest quarter yet, surpassing Q2 FY24.

We note, there are five mega-budget Indian movies slated to release in Q3 FY25E. In addition, PVR Inox is in advanced negotiations to monetise non-core assets with an expected inflow of ~Rs 3 billion.

Our channel checks also indicate that some of the mall owners are entering franchisee agreements with PVR Inox; this should help improve their capital efficiency. Reiterate Buy with an increased target price to Rs 2,250.

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