PVR Inox Shares Drop Despite Strong Q4 Profit; Brokerages Assess Outlook
Shares of PVR INOX declined by 6% over two trading sessions, falling to Rs 1,000 on the BSE, despite the multiplex operator reporting a significant return to profitability in the March quarter. The company posted a consolidated net profit of Rs 187 crore, a sharp turnaround from the Rs 125 crore loss recorded in the same period last year. This recovery was driven by strong performances from blockbuster films and a 26% year-on-year increase in revenue to Rs 1,547 crore. Key metrics showed a 2% rise in admissions and substantial increases in average ticket prices and spend per head. Financial institutions offered mixed outlooks: Nuvama Institutional Equities and Elara Capital maintained 'Buy' ratings with target prices implying significant upside, citing a robust content pipeline and reduced debt. Conversely, Motilal Oswal retained a 'Neutral' rating, warning that the business remains highly sensitive to occupancy levels, where even minor declines could negatively impact earnings. The divergent analyst views highlight the tension between improved financial fundamentals and ongoing operational risks in the cinema exhibition sector.
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PVR Inox Shares Drop Despite Strong Q4 Profit; Brokerages Assess Outlook
Shares of PVR INOX declined by 6% over two trading sessions, falling to Rs 1,000 on the BSE, despite the multiplex operator reporting a significant return to profitability in the March quarter. The company posted a consolidated net profit of Rs 187 crore, a sharp turnaround from the Rs 125 crore loss recorded in the same period last year. This recovery was driven by strong performances from blockbuster films and a 26% year-on-year increase in revenue to Rs 1,547 crore. Key metrics showed a 2% rise in admissions and substantial increases in average ticket prices and spend per head. Financial institutions offered mixed outlooks: Nuvama Institutional Equities and Elara Capital maintained 'Buy' ratings with target prices implying significant upside, citing a robust content pipeline and reduced debt. Conversely, Motilal Oswal retained a 'Neutral' rating, warning that the business remains highly sensitive to occupancy levels, where even minor declines could negatively impact earnings. The divergent analyst views highlight the tension between improved financial fundamentals and ongoing operational risks in the cinema exhibition sector.
Economic Times