Shares of PVR INOX rose 9% on October 7 after global brokerage CLSA retained its ‘Outperform’ rating on the multiplex operator with a target price of Rs 2,135, indicating an upside of around 57% from the current market price.
CLSA’s positive outlook is driven by an improvement in cinema attendance, higher spending per customer and the potential for margin expansion as operating leverage strengthens.
PVR INOX reported a strong first quarter, with admissions increasing 8% year-on-year. Revenue from movie tickets grew 15%, while food and beverage (F&B) revenue rose 13%. Reported earnings before interest, tax, depreciation and amortisation (EBITDA) increased 33% during the quarter.
At 1:45 pm on October 7, shares of PVR INOX were trading 9% higher at Rs 1,361.3 apiece, making it the top gainer on the Nifty Media index, which was up 1%.
CLSA said the simultaneous improvement in attendance and per-customer spending signals a recovery in consumer demand. The brokerage described PVR INOX as “a compelling play on discretionary consumption in India”, noting that multiplexes remain a key form of outdoor entertainment, with around 1,500 films released in India annually.