PVR Inox Ltd.'s share price fell over 4% during early trade on Friday after UBS reduced its target price on the stock from Rs 2,000 to Rs 1,350.
The firm noted lower occupancy due to factors such as lack of good releases, traffic/mall parking inconvenience, and extra costs. "Our thesis of the theatrical experience superseding the comfort of the couch at home is taking longer to play out than we expected," analysts said.
The note said the stock and valuation still make PVR Inox attractive, as the company could improve in FY26 on strong content pipeline. Moreover, management initiatives like re-releases and IPL cricket screenings could help marginally.
UBS expects occupancy to improve to 25% in FY26 from 22.3% the previous year and revenue to grow 10% to Rs 500 crore.
"The business' structural issues are sticky. However, a pivot toward an asset-light FOCO (franchise-owned, company-operated) model and cost-lever realignment would lend some support," the brokerage said.
PVR Inox Stock Down
PVR Inox share price declined 4.6% to Rs 915.5 apiece by 11:10 a.m.
PVR Inox share price declined 4.6% to Rs 915.5 apiece by 11:10 a.m. The benchmark NSE Nifty 50 was down 1%.
The stock has declined 33% in the last 12 months and 29% on a year-to-date basis. The total traded volume so far in the day stood at 0.7 times its 30-day average. The relative strength index was at 51.
Sixteen out of 22 analysts tracking PVR Inox have a 'buy' rating on the stock, and three each recommend 'hold' and 'sell', according to Bloomberg data. The average of 12-month analysts' price target implies a potential upside of 57%.
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