Hold PVR Inox; target of Rs 1780: Sharekhan

Sharekhan's research report on PVR Inox

PVRINOX’s revenue stood at Rs. 1,622, up~36% q-o-q/down 19% y-o-y, beating our estimate of Rs. 1,581 crore. EBITDA margin (pre Ind-AS116) stood at 11.5%, beating our estimate of 9%. Average ticket price (ATP) stood at Rs. 257, down 6.7% y-o-y, while F&B spend per head (SPH) was flat y-o-y at Rs. 136. The company anticipates Q3 to be the strongest quarter of FY25 and expects occupancy levels to rise in Q3, Q4, and FY26.

Outlook

We maintain HOLD on PVRINOX with revised PT of Rs 1,780. At the CMP, the stock trades at 28.7x its FY26E EPS and 12.7x its FY26E EV/EBITDA.