PVR Inox Share Price Hits Nearly Six-Month High After Q1 Net Loss Narrows

PVR Inox Ltd.'s share price rose to the highest level in nearly six months after its net loss shrank because of good operating profit. It has reported Ebitda in line with estimates because of its good cost control initiatives, the brokerage said.

PVR Inox's occupancy rate and screen rose during the April–June period. The company has opened 20 new screens, with 14 screens under the FOCO and asset-light models. FOCO stands for franchise-owned and company-operated screens, BofA said in a note.

Now, PVR Inox has 55 new screens signed under FOCO and 72 under the asset-light model, which displays the company's intent on capital allocation expansion over the next 18–24 months, BofA said.

PVR Inox's management said that the Ebitda will be similar, while the return on capital employed will likely be much healthier, BofA said.

BofA maintained an underperform rating with Rs 945 apiece, which implied an 8.7% downside from the current market price. The brokerage said that a consistent good content pipeline will ensure a case for re-rating.

• Net loss Rs 54 crore versus loss of Rs 179 crore

• Revenue rose 23.4% to Rs 1,469 crore versus Rs 1,191 crore

• Ebitda rose 58% to Rs 397 crore versus Rs 252 crore

• Margin at 27% versus 21.1%