PVR INOX - Strong Pipeline, Deleveraging On-Track; Maintaining A Buy: Anand Rathi

Anand Rathi Report

After a muted Q1, PVR Inox Ltd. is set for sequential improvement from Q2 FY25. Plus, advertising income, which has been lagging pre-Covid levels should get a boost. Ahead, Q3 FY25 is expected to be a good quarter for PVR-Inox, backed by many franchise movies.

PVR’s Q3 performance may surpass its best quarter, Q2 FY24, (release of Gadar2, OMG-2 and Oppenheimer). Besides, measures to pare debt (by monetising three properties in Mumbai, Pune and Vadodara), and improve operational efficiencies by adopting an asset-light model augur well for earnings growth outlook and stock re-rating.

We introduce FY27e and retain our Buy with a raised target price of Rs 2,065 (13 times FY27e pre-Ind-AS Ebitda).

Risk: Poor content, growing penetration of OTT platforms.

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