Palantir a high-risk investment with ’a one-of-a-kind growth and margin model’
On Tuesday, Elara Securities India revised its stance on PVR Inox Ltd (PVRINOX:IN), downgrading the company’s stock rating from Buy to Accumulate and reducing the price target from INR 1,600 to INR 1,100. The adjustment follows the cinema operator’s fourth-quarter performance, which reflected weaker box office results.
PVR Inox’s fourth-quarter figures showed occupancy rates dropping to 20.5% from 22.6% in the same quarter of the previous fiscal year. The company also reported a 6.4% year-over-year decline in footfall, with a total of 30.5 million visitors. On the brighter side, the net average ticket price (ATP) increased by 8.5%.
Despite a promising content slate for the first half of the fiscal year 2026, which could lead to stronger showings, Elara analysts anticipate that post-COVID occupancy rates will structurally remain around 23%, a noticeable decrease from the pre-pandemic levels of over 30%. In light of these observations, Elara has revised its EBITDA estimates for PVR Inox downwards by 9-11% for the fiscal years 2026 and 2027.
The new price target of INR 1,100 is based on a multiple of 14 times the June 2028 estimated enterprise value to EBITDA (EV/EBITDA), before consideration of Indian Accounting Standards (IND As). Furthermore, Elara Securities has introduced its fiscal year 2028 estimates for the company.
The downgrade and new price target reflect Elara Securities’ adjusted expectations for PVR Inox’s financial performance in the coming years, taking into account the current trends in the cinema industry and the lingering effects of the COVID-19 pandemic on consumer behavior.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.