Stock overview
| Ticker | PVRINOX |
| Sector | Media & Entertainment |
| Market Cap | ₹ 9,568 Cr |
| CMP (Current Market Price) | ₹ 969 |
| 52-Week High/Low | ₹ 1,748/ ₹ 866 |
| P/E Ratio | NA |
| Beta | 1.2 (Moderate to High volatility) |
About PVR INOX
PVR INOX Ltd. was formed in 2023 after the merger of PVR Ltd. and INOX Leisure, creating a dominant force in the Indian cinema industry. With 1,650+ screens across 100+ cities, the company holds the largest market share in India’s multiplex sector.
Known for its luxury cinemas, IMAX formats, and premium experiences, PVR INOX continues to expand aggressively while innovating its customer experience through loyalty programs and food & beverage offerings.
This report provides a detailed analysis of the company’s Q3 FY25 performance, its growth trajectory, competitive landscape, risks, stock recommendation and technical outlook to help investors assess its long-term potential.
Primary growth factors for PVR INOX
1. Expansion & screen growth
- Targeting 2,000 screens by 2027, adding 60-70 screens per year.
- Expanding in Tier-2 & Tier-3 cities, capturing untapped market potential.
- Content pipeline & blockbusters
- Well-diversified content pipeline across Bollywood, Hollywood and regional cinema.
- Benefiting from strong Hollywood releases, which reported a 118% increase in Box office collection on a YoY basis
- Regional cinema growth (Telugu, Tamil, Malayalam) is boosting occupancy rates. The business reported a 25% increase in Box office collection.
- Premiumisation & Experience upgrades
- Introduction of 4DX, IMAX, and Luxe formats.
- Higher contribution from food & beverages (F&B) and loyalty programs.
- Alternative revenue streams
- Ad revenues are at a 5-quarter high, driven by strong corporate partnerships.
- Growth in private screenings, gaming zones, and OTT partnerships.
- Here’s a breakdown of the ad revenues on a QoQ basis.
- Digital & subscription growth
- Expanding its PVR Privilege & INOX Rewards loyalty programs.
- Higher bookings via the PVR INOX app, reducing reliance on aggregators.
Q3 FY25 Financial Performance
| Metric | Q3 FY 25 | YoY Growth | QoQ Growth |
| Income | 1,739 cr | 11% | 6% |
| EBITDA | 258 cr | 14% | 25% |
| Profit after Tax | 68 cr | 65% | 209% |
| Admints (in million) | 37.3 | 2% | -4% |
| Avg Ticket Price | 281 | 4% | 9% |
| F&B Spends per Head | 140 | 6% | 3% |
- PVR INOX reported an impressive 11% growth in Income and 65% growth in profit in Q3 FY25.
- The business reported a 2% growth in the total number of screens as well as in the total admits in the theater.
- The average ticket size reported a 4% growth while the F&B spends per head reported a 6% increase indicating an increase in the premiumization drive that is witnessed in the industry.
Detailed competition analysis for PVR INOX
| Company | Market Cap | Profit | Price to Book Value | RoCE |
| PVR INOX | 9,568 cr | ₹ 6,304 cr | 1,3x | 4.7% |
| Sun TV | 13,25,400 cr | ₹ 25,024 cr | 2.2x | 26.2% |
| Zee Entertainment | 8,57,900 cr | ₹ 10,214 cr | 0.9x | 6.3% |
| Saregama India | 3,78,300 cr | ₹ 9,809 cr | 6.3x | 19.6% |
- PVR INOX trades at a lower valuation (P/E 11.1x)Â vs its peers in the market. This is also due to underwhelming quarterly reports in the past.
- However, PVR INOX share may see recovery owing to its strong content engine that is spread across Bollywood, Hollywood and regional cinema.
Company valuation insights: PVR INOX
As per Discounted Cash Flow analysis:
It estimates the intrinsic value of PVR INOX shares based on expected future cash flows:
- Intrinsic Value Estimate: ₹1,120 per share
- Upside Potential: 15%
- WACC: 11.1%
- Terminal Growth Rate: 4%
Despite the recent stock correction, strong growth catalysts and market dominance make PVR INOX a decent long-term bet..
Major risk factors affecting PVR INOX
1. OTT & Changing consumer behavior
- Growth of Netflix, Prime Video, and Disney+ Hotstar poses competition.
- Consumers increasingly prefer home entertainment, affecting footfalls.
- Regulatory & Taxation risks
- GST on movie tickets (18%) can impact ticket affordability.
- Stringent regulations on F&B pricing within multiplexes.
- Economic slowdown impact
- Discretionary spending drops in a weak economy.
- Inflation could impact consumer entertainment budgets.
- Rising rental & Operating costs
- Higher costs due to expansion & premium theater formats.
- Reliance on mall footfalls adds external dependency.
Technical analysis of PVR INOX
- Resistance: ₹1,020
- Support: ₹950
- Momentum: Neutral, Bullish
- RSI (Relative Strength Index): 54 (Neutral)
- 50-Day Moving Average: ₹990Â
- 200-Day Moving Average: ₹970Â
The stock is currently consolidating near its 200-DMA, suggesting accumulation before a potential breakout above ₹1,020.
PVR stock recommendation by Ketan Mittal
Moderate Buy / Accumulate on DipsÂ
 Target Price: ₹1,120 (12 months)
Rationale
Strong Industry Leader with market dominance and brand powerÂ
Steady Revenue Growth from premium screens & F&B sales.
Valuation Justified, but short-term challenges exist.
Technical Setup Positive, with potential breakout ahead.If you found this helpful and want regular stock trade calls, check out my StockGro profile here: https://stockgro.onelink.me/vNON/6m6ykj0d
