Buy PVR Inox; target of Rs 2000: ICICI Securities

ICICI Securities's research report on PVR Inox

We expect H2CY24 to be meaningfully better for movie exhibition business compared to H1CY24. We note many producers delayed the scheduled releases, which has now led to a pent-up content pipeline. Prominent titles to boost Q2FY25 collections: Kalki (spill over), Deadpool and Wolverine, Stree 2, Vedaa and Devara Part 1. We believe this could help in reversing the losses of H1CY24. In particular, Q3FY25E could rival the success of Q2FY24, in our view. Reiterate BUY with TP of INR 2,000. On Jul 22, ’24, PVR Inox hosted its earnings call. The session provided clarity on many points highlighted in our previous note (link). A summary of the key points is given below.

Outlook

We maintain our target price of INR 2,000 with a multiple of 16x adj. EBITDA (1-year forward). Key risks: Lower-than-expected performance of upcoming movies and merger synergies not playing out as expected.