PVR Inox share price jumped as the company could showcase strong performance, as per a report published by research house Anand Rathi. PVR Inox touched intraday high of Rs 1,704 and low of Rs 1,657. PVR Inox Ltd is up for a third straight session today. The stock was trading at Rs 1691, up 2.2% at the time of publication of this report. The stock has been gaining ground for the last three trading sessions.

Brokerage house Anand Rathi reaffirmed its 'buy' rating on the stock, projecting a target price of ₹2,065 per share. This reflects a potential upside of 25% from its previous close of ₹1,655. The optimism stems from expectations of a stronger second quarter in fiscal 2025, fueled by improving advertising revenues and a slate of blockbuster film releases. With plans to expand its cinema footprint and shift toward an asset-light model, PVR Inox remains a compelling investment, supported by 15 analysts maintaining a ‘buy’ recommendation.

PVR Inox Sees Stock Rise After Anand Rathi Reaffirms ‘Buy’ Rating

Stock Climbs 3% on Positive Brokerage Outlook

Shares of PVR Inox Ltd. gained nearly 3% in Monday’s trading session following a note from Indian brokerage Anand Rathi. The brokerage maintained its 'buy' rating on the stock with a target price of ₹2,065, indicating a 25% upside from its last closing price of ₹1,655 per share. This bullish outlook comes despite a muted first quarter, with expectations of sequential improvement in the upcoming quarters.

Q2 Revenue Boosted by Blockbuster Releases

Sequential Improvement Anticipated in Q2 FY25

Anand Rathi expects a notable improvement in the second quarter of fiscal 2025, driven by a recovery in advertising income, which has lagged behind pre-pandemic levels. A key driver of this rebound will be the release of several highly anticipated films, including Kalki 2898 AD, Stree 2, and Deadpool & Wolverine. The influx of blockbuster titles is poised to boost both footfalls and revenues for PVR Inox, reinforcing its position in the entertainment sector.

Blockbusters Expected to Drive Strong Q3 Performance

The company is set to capitalize on a robust lineup of franchise films in the third quarter of FY25, which is projected to be the best-performing quarter for PVR Inox. Key releases such as Pushpa 2, Singham Returns, Sitaare Zameen Par, and Bhool Bhulaiyaa 3 are expected to draw large audiences, resulting in stronger revenue and profitability.

Expansion and Strategic Growth Plans

Plans to Add 110-120 Screens in FY25

PVR Inox is planning an aggressive expansion strategy, with the goal of adding 110-120 gross screens during fiscal 2025. However, net screen additions are expected to be around 50-60 screens, as the company continues to rationalize its footprint. This growth is aligned with the company’s broader strategy of reducing debt and adopting an asset-light model, positioning it for long-term financial sustainability.

Focus on Reducing Debt and Asset-Light Approach

In a bid to strengthen its balance sheet, PVR Inox is focused on debt reduction while shifting toward an asset-light business model. This approach is expected to improve its financial flexibility and enhance shareholder value, especially as the company continues to recover from the challenges posed by the pandemic.

Analyst Sentiment and Market Outlook

Analysts Bullish on PVR Inox’s Future Prospects

Market sentiment remains largely positive toward PVR Inox. Out of 20 analysts tracking the stock, 15 have issued a 'buy' recommendation, three suggest holding, and only two have advised selling, according to data from Trendlyne. This widespread optimism reflects confidence in the company's strategic plans, expansion efforts, and ability to deliver growth in the coming quarters.

Strong Industry Position Supported by Favorable Macro Trends

PVR Inox's outlook is buoyed by favorable macroeconomic trends, including a recovery in consumer spending and a robust film release calendar. The company’s continued focus on expansion, coupled with its asset-light strategy, ensures it remains well-positioned to navigate industry challenges and capitalize on future opportunities.