The stock has gained after brokerage firm CLSA maintained an ‘Outperform’ recommendation on PVR INOX and set a price target of ₹2,135 per share. The target implies a potential upside of around 71% from the stock’s previous closing level.
CLSA said the Indian movie-going experience is seeing a recovery, with audiences returning to theatres for a premium out-of-home entertainment experience. The brokerage believes fatigue with over-the-top (OTT) and streaming platforms is also supporting the revival in theatrical footfalls.
India sees around 1,500 movie releases every year, with content quality improving across Bollywood, Hollywood and regional cinema. This is supporting audience engagement and creating a favourable backdrop for multiplex operators.
PVR INOX, the country’s largest multiplex operator, operates around 1,800 of India’s roughly 4,000 multiplex screens and is witnessing an improvement in footfalls.
The company is also expanding its screen network, with investments being funded through internal cash flows. PVR INOX has identified around 300 Tier 3 and Tier 4 towns for its smart-screen expansion, providing an additional growth avenue beyond the major urban markets.
CLSA also highlighted PVR INOX’s strong balance sheet, with the company maintaining a net cash position. The multiplex operator recently completed its maiden ₹300 crore share buyback, further underscoring its balance-sheet strength.