PVR INOX Ltd. share price target

PVR Inox performance update states that they have achieved ‘highest ever daily and weekend admissions and box office’. On 13th Aug’23, PVR Inox had 1.28mn admits and 3.36mn admits over Friday to Sunday with GBO revenue >INR 1bn. We think this implies an occupancy of 72-75% on Sunday and 63-65% over 3 days.

PVR Inox beat revenue estimates in Q1FY24, helped by flow through of merger synergies (+9% QoQ in SPH and +3% QoQ in ATP). Admits also increased 11% QoQ despite flattish occupancy (+10 bps QoQ) led by an increased number of shows per screen.

As clichéd as it sounds, we feel the cricket inspired title of the note holds true for PVR Inox. It is a strong market leader in its category with a history of value creation and a clean record on corporate governance.