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Business News/ Markets / Stock Markets/  PVR Inox share price gains a day after Q1 results; here's what brokerages say
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PVR Inox share price gains a day after Q1 results; here's what brokerages say

PVR Inox Q1 results: PVR Inox share price gains in morning trade a day after the multiplex chain operator reported a net loss of ₹44.1 crore in Q1, narrowing from ₹285.7 crore in the previous quarter

PVR Inox share price opened higher at ₹1,585 as against the previous close of ₹1,565.95 a day after the company declared its Q1 resultsPremium
PVR Inox share price opened higher at 1,585 as against the previous close of 1,565.95 a day after the company declared its Q1 results

PVR Inox Q1 results: PVR Inox share price opened higher at 1,585 as against the previous close of 1,565.95 a day after the company declared its Q1 results. The PVR Inox stock further gained to touch a high of 1,614.10, up about 2% from yesterday's close. At the time of writing this copy, PVR Inox shares were trading at 1,588.65, up 22.70, or 1.45%.

PVR Inox, the multiplex chain operator, on Tuesday reported a net loss of 44.1 crore in the quarter ended June 2023 as compared to a net profit of 68.3 crore in the year-ago period.

The company’s net loss, however, narrowed sequentially from 285.7 crore in the previous quarter.

In Q1FY24,  revenue from operations climbed 31.7% year-on-year (YoY), from 961.5 crore to 1,266.6 crore.

Sequentially, the company's average ticket price increased by 2.9% to 246 from 239. At the same period, spending per person grew 9.2% to 130 from 119 in the previous quarter.

“Looking forward to FY’24, we are optimistic about the robust content line up across all languages," said the company in an exchange filing. 

Also Read: PVR Inox Q1 Results: Multiplex chain reports net loss of 44 crore; Average ticket price up 2.9% QoQ

On the technical front, as per trendlyne data, PVR Inox stock price fell 26.8% and underperformed its sector by 26.1% in the past year.

“After a long underperformance, the PVR Inox stock price has seen a pullback move in last couple of weeks mainly due to short covering. We expect the stock to consolidate in a range in the near term with support placed around 1400 and resistance in 1650-1700 range," said Ruchit Jain, Lead Research Analyst at 5paisa.

What do brokerages say? 

Nuvama Institutional Equities 

According to the brokerage's report, PVR Inox recorded strong results led by exceptional performance of films across genres, contributing to a considerable increase in overall box office collections (up 15% QoQ). In contrast to their earlier forecasts of a loss of 919 million, the company recorded a loss of 816 million. The increase in Food & Beverage (F&B) sales of 22% QoQ indicates the firm's desire to become a premier QSR company while also pursuing its goal of increasing profitability.

“The content pipeline for Q2FY24 and FY24 at large is robust. We continue to reiterate our positive stance on multiplexes over the medium/long-term. We are rolling forward the valuation to Q1FY26E; this along with an unchanged target P/E of 12x yields a target price of 2,080 (earlier 1,990); retain ‘BUY/SO’," said the brokerage. 

Kotak Institutional Equities 

PVR Inox's 1Q EBITDA, at 808 million, was down 75% year over year, according to the brokerage's report. This was because of the weak occupancy.

The box office (BO) performance of recent (June/July) Bollywood releases has improved, and Hollywood/Regional BO has continued to perform well. The occupancy rate might gradually rise to acceptable levels if these trends continue. The stock is given the brokerage's 'Add' rating.

“We cut FY2024/25E occupancy/footfall, ad revenue and convenience fee forecast and increase ATP and SPH estimates. Net result: 22%/8% cut in our FY2024/25E EBITDA. We value PVR at 11.5X September 2025E EV/EBITDA (11X FY2025E EV/EBITDA earlier. PVR is not out of the woods yet, but recent trends are encouraging; we will closely track Bollywood BO to see if this momentum sustains," said the brokerage in its report. 

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Published: 02 Aug 2023, 10:12 AM IST
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