Hold PVR Inox; target of Rs 1550: Sharekhan

Sharekhan's research report on PVR Inox

Revenues stood at Rs 1191 crore down 5.2 q-o-q/ 8.8% y-o-y in line with our estimates of Rs.1194 crore. EBITDA margin (pre Ind-AS116) stood at -3.2%. Average ticket price (ATP) declined to Rs 235, down 4.7% y-o-y while F&B spend per head (SPH) grew 3.1% y-o-y to Rs. 134. Content pipeline is looking strong in Q2, Q3 and Q4 partially due to a lot of films which were coming in Q1 being pushed to Q2 or Q3.

Outlook

We downgrade PVRINOX to Hold with unchanged PT of Rs 1550.At CMP, the stock trades at 27.3x FY26E EPS and 12.3x FY26E EV/ EBITDTA.