PVR INOX Shares: PVR Inox shares can almost double its investors’ money in the next 2 years. Domestic brokerage firm Ventura Securities has made this estimate in a recent report. Ventura has started covering this stock with ‘Buy’ rating and has set a target price of Rs 2,657 for it. This is an estimated rise of about 88 percent in this stock from the current level. Ventura said that after the recent success of films like Stree-2 and Pushpa-2, the worst phase is over for the sector. Earlier, viewership had reached its lowest level, due to which the financial health of PVR-INOX was damaged.
PVR-Inox has changed its business model. The company is now focusing on FOCO and O&M format instead of COCO-FOCO model. It is an asset light model, which can help accelerate the pace of reaching breakeven and then increase profits.
Following PVR-Inox’s restructuring, the company currently has 1,700 screens and Ventura expects it to reach 1,900 by fiscal 2027. There may be a total capital expenditure of Rs 400-450 crore.
Ventura wrote in his note that despite adopting a conservative stance on occupancy and food and beverage (F&B) growth, we still expect the company’s revenue to reach Rs 4,500 crore by FY 2027. This will be a CAGR growth of about 10.5 percent. The brokerage said this growth will be led by movie ticket sales, food and beverage sales and advertising income.
Ventura expects PVR-Inox’s EBITDA and net income to grow at a CAGR of 13.2% and 25.4%, respectively, by FY2027. “Given the recent disappointing performance, our estimates are based on very conservative assumptions and any change could pose a risk to our estimates,” the brokerage said.
Meanwhile, shares of PVR-Inox closed at Rs 1,372.45 with a rise of 0.84 per cent on NSE on Tuesday, December 24. So far this year, the company’s shares have fallen by about 17.34 percent.
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