Neutral PVR-Inox; target of Rs 1400: Motilal Oswal

Motilal Oswal's research report on PVR-Inox

PVR-Inox reported a subdued quarter, with 22.6% occupancy and 0.1% EBITDA margin. Revenue declined 19% QoQ, led by weak ticketing and ad revenue, which, coupled with an increase in movie distribution and other expenses, led to EBITDA of INR12m (big miss). The 2024 general elections and T20 Cricket World Cup are likely to weigh on the 1QFY25 movie pipeline, which could lead to lower occupancy. Hence,

Outlook

We cut our EBITDA estimates by 24%/13% for FY25/FY26. Continued fluctuation in occupancy could remain a key monitorable, as the business remains highly sensitive to occupancy, and even a 200-300bp blip could derail the screen economics. Reiterate Neutral with a TP of INR1,400.