Unlocking Blockbuster Potential: ICICI Securities Recommends Buying PVR Inox, Sets Target at Rs 1950

PVR and Inox Cinemas have exceeded revenue expectations in the first quarter of the fiscal year 2024 (Q1FY24), benefiting from the positive effects of merging operations (+9% quarter-on-quarter growth in screen per hour and +3% quarter-on-quarter growth in average ticket price).

Despite a relatively steady theater occupancy rate (+10 basis points quarter-on-quarter), ticket sales have increased by 11% quarter-on-quarter. This impressive performance is notable considering the mixed reception of some major blockbuster films during Q1FY24. As the trend of "movie-going" gains momentum, particularly among high-end audiences, boosted by the releases of movies like 'MI7', 'Oppenheimer', and 'Barbie', the second and third quarters (Q2 and Q3) have the potential to be pivotal for PVR and Inox.

The upcoming content lineup, including films like 'OMG 2', 'Gadar 2', and 'Jawan', positions these quarters for success.

Addressing concerns that the rise of Over-The-Top (OTT) streaming platforms might negatively impact the relevance of traditional movie exhibition, it's asserted that such concerns are unwarranted.

Despite this worry, the stock value had experienced a significant decrease from its historical multiples.

However, this report maintains a positive outlook and reiterates a BUY recommendation for investing in this stock.

Looking ahead, the content schedule for PVR and Inox is predicted to improve starting from Q2FY24E, aligning with an anticipated increase in theater occupancy. The analysis factors in a projected revenue growth of 9.2% (pro-forma) for the fiscal year 2024, accompanied by a 560 basis points expansion in Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) margin (pro-forma).

Consequently, the target stock price remains at INR 1,950, with an unchanged multiple of 16 times the EBITDA estimated for the fiscal year 2025. This assessment underscores the potential for continued success and growth for PVR and Inox Cinemas in the foreseeable future.

Comments

Inspirational Story Of Ferrari - Amazing Adviser

Inspirational Story Of Ferrari Hello friends, today I'm going to discuss one of the most popular sports car companies in the world - Ferrari. Today, each sports car lover dreams to get a Ferrari. It keeps gaining popularity till today. This company was founded by Enzo Ferrari. So let's get to know the success story of Ferrari. Also Read, Success Story Of Amul Success Story of Dominos Pizza The story starts with 18 Feb 1898 when Enzo Ferrari was born in Italy. Enzo was fond of cars right from his childhood. At 10 yrs of age, he went to see a car race with his father. At that point in time, he decided that he would become a racing driver. After that, he attended many car races. After completing his graduation from Modena College, he worked as a teacher. But after a few months, he had to join the Italian army for the first World War. In 1916, he suffered a lot with emotions as well as the economy when his brother and father died. After returning from World War, he began to find

Inspirational Story Of BMW - Amazing Adviser

The wonder of science has shown many miracles in today's age in the form of spectacular vehicles. Today I will discuss about a German company that specializes in designing cars, bikes and engines - BMW. It came into being before 101 years and is known for its expensive and luxury cars like Rolls Royce and Mini. But do you know that BMW was in the list of those companies which were restricted to produce any kind of vehicles during the time of World War? And in that period, this company started making bicycles and kitchen utensils. Now let's go to the beginning of the story. Also Read Success Story Of Ambassador Car Success Story Of Jaguar Success Story Of UBER The founder of BMW was Karl Friedrich Rapp. He was born on 24 September 1882 in Germany. He became a mechanical engineer and opened his start up named Karl Rapp Motorenwerke where mostly aircrafts and their engines were made. When the first world war started, there was a huge demand of aero engines. Thus,

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand

Success Story Of Colgate, One Of The Bestselling Toothpaste Brand "It cleans your breath while it cleans your teeth", can you guess whose slogan is this. If you have guessed correct then today I'm going to tell you the success story of one of the best selling toothpaste brands of India i. e. Colgate. It's popularity can be measured by thousands of situations where the term toothpaste is replaced by Colgate in India. Do you know, this brand came into being almost 210 years ago, introduced by Williams Colgate . And initially, this company used to produce soaps, not toothpaste that too in jars and not tubes. So now, let's get back to the beginning of the story. Also Read Success Story Of Haldiram Bujhia Success Story Of Amul How Maggie Became Successful? The founder of Colgate, Willam Colgate was born on 25 Jan 1783 in England. His father was a farmer. But later, they shifted to Maryland in the US where his father along with a friend began to make candles

Amazing Adviser

Search This Blog