Buy PVR Inox; target of Rs 1797: Prabhudas Lilladher

Prabhudas Lilladher is bullish on PVR Inox has recommended buy rating on the stock with a target price of Rs 1797 in its research report dated August 02, 2023.

Broker Research

August 04, 2023 / 10:50 IST

Buy

26 Aug, 2025 12:21

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Prabhudas Lilladher's research report on PVR Inox

In a subdued quarter, PVR-Inox’s performance was broadly in-line with footfalls of 33.9mn (PLe 33mn) and pre-IND AS EBITDA margin of 6.2% (PLe 5.8%). After the recent success of “Barbenheimer” and MI-7, Bollywood has an interesting pipeline with movies like Oh My God-2, Gadar-2, Jawan and Dream Girl-2 lined up for release in next 2 months. Even regional pipeline is healthy with movies like Jailor, Bhola Shankar and Salaar gearing up for release in 2QFY24. Though there are concerns over persistent high volatility in Bollywood genre 1) sustenance in KPIs (ATP/SPH up 2%/10% YoY on proforma basis), 2) expected back ended recovery in ad-revenues (a high margin business) and 3) strategy to penetrate deeper in Southern market (a high footfall geography) is expected to aid growth and margins.

Outlook

Consequently, we expect footfalls of 154mn/166mn with pre-IND AS EBITDA margin of 16.2%/17.8% for FY24E/FY25E respectively. Retain ‘BUY’ on the stock with a TP of Rs1,797 (earlier Rs1,704) after assigning EV/EBITDA of 14.5x as we roll-forward to FY25E.

For all recommendations report, click here