PVR Inox shares jump 10% to hit 52-week high; CLSA, Investec see further upside

Shares of PVR Inox Ltd jumped 9.75 per cent in Wednesday's trade to hit a 52-week high, after brokerages remained positive on the multiplex operator, citing improving footfalls, strong movie performance and a healthy content pipeline.

CLSA retained its 'Outperform' rating on PVR Inox with a 12-month price target of Rs 2,135.

The global brokerage said its interaction with PVR Inox management indicated that movies are making a comeback to theatres, with viewers seeking a premium outdoor entertainment experience.

PVR Inox sees rising footfalls

The brokerage noted that India sees around 1,500 movie releases a year, with content improving across Bollywood, Hollywood and regional films. PVR Inox, which operates around 1,800 screens, is witnessing growing footfalls, it said.

CLSA highlighted improved film performances and box-office collections, including blockbuster 'Dhurandhar 2' and sleeper hits such as 'Hanuman Ansh'. It said strong theatrical performance was helping ease concerns around structural risks from OTT and streaming platforms.

According to the brokerage, more than 75 per cent of PVR Inox's patrons are below 45 years of age, while multiplexes remain a key outdoor entertainment option.

PVR Inox management is targeting 100 additional screens in FY27, with the expansion weighted towards asset-light formats and funded through internal cash flows. The company has also identified around 300 tier-three and tier-four cities for smart-screen expansion and is pursuing tie-ups with local developers, CLSA said.

The brokerage retained its positive view on the stock, with revenue and EBITDA growth expected at around 11-13 per cent annually through FY29.

Investec raises target

Investec raised its target price to Rs 1,821 from Rs 1,466 and maintained a 'Buy' rating.

The domestic brokerage said there was "firm evidence that the tide has turned" for PVR Inox. It pointed to the strong performance of mid-sized films, footfall growth ahead of screen growth over the past five quarters, negligible direct-to-OTT film releases and better average ticket price (ATP) and spend per head (SPH).