New Delhi: ICICI Securities gave a BUY call on cinema chain operator PVR Inox citing a potential reversal of fortunes for the company from a revamp of its content pipeline. The brokerage in its report stated that the cinema chain operator was affected by a weak content lineup. The company’s earnings did not necessarily reflect a behavioural shift among consumers in the sense of a pivot towards OTTs.
The brokerage expects PVR Inox to put to rest investors’ concerns related to its performance and consumer behaviour by the third quarter of FY25. The estimated performance of the cinema chain operator is expected to outperform the performance witnessed in the second quarter of FY24, according to ICICI Securities.
PVR Inox share price target
ICICI Securities gave a share price target of Rs 2,250 apiece for PVR Inox. The brokerage suggests that investors can enter the stock at Rs 1,595 apiece. This indicates a 41 per cent upside over the previous target price.
Why ICICI Securities is bullish on PVR Inox
ICICI Securities cited the expected release of 5 big budget movies in Q3FY25 as an event that could bring a potential turnaround to the cinema chain operstor’s earnings. PVR Inox is also expected to ramp up earnings once discussions around the monetisation of non-core assets are concluded. The business line is expected to yield nearly Rs 300 crore in revenues, according to the brokerage.
PVR Inox is also expected to benefit from potential franchisee agreements which may be signed by mall owners, ICICI Securities said, citing channel checks. The brokerage flaggrisks related to lower than expected performance of upcoming films. Another risk flagged by the brokerage was merger synergies not transpiring along expected lines. The company closed 85 screens across 24 cinemas in FY24 owing to underperformance. The company is planning to shutter another 70 screens in the ongoing fiscal FY25.
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PVR Inox share price target: ICICI Securities has given a BUY call on cinema hall operator PVR Inox. Check share price target and stoploss. Markets Business News – Personal Finance News, Share Market News, BSE/NSE News, Stock Exchange News Today
