Avendus Spark on PVR Inox: Maintains ‘Buy’ call, sees 40.5% upside on strong movie lineup and cost efficiencies

Avendus Spark has maintained a ‘Buy’ rating on PVR Inox with a target price of ₹1,910, suggesting an upside potential of 40.5% from its current market price of ₹1,359.05. The brokerage highlights a robust release calendar and operational efficiencies as key growth drivers.

Key Highlights:

  1. Hollywood’s Mega Lineup:
    Hollywood studios are set to release 25 mega-budget movies evenly spread across CY25, which is expected to drive footfall growth for multiplexes.
  2. Bollywood’s Sequel Strategy:
    Bollywood is focusing on sequels to successful franchises and proven genres, which is likely to resonate well with audiences and contribute significantly to box office collections.
  3. Room for Ticket Price Hikes:
    The anticipated strong content lineup creates opportunities for ticket price hikes, bolstering revenue growth.
  4. Operational Efficiencies:
    PVR Inox continues to optimize its cost structure, aided by the favorable Indian market environment.

Avendus Spark views PVR Inox as well-positioned to benefit from the robust movie pipeline in CY25. With a focus on operational efficiencies and premium content offerings, the multiplex operator is expected to deliver strong growth in the coming quarters.

Disclaimer: This article is based on a brokerage report and is for informational purposes only. It does not constitute financial advice. Investors should conduct their own research or consult a financial advisor before making investment decisions.

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