Nuvama Institutional Equities has reiterated its Buy rating on PVR Inox Ltd., with a target price of ₹1,765, citing an impressive start to CY25 and revival in box office collections.
After a weak CY24, the new year has begun on a positive note with January-February box office collections rising 39% YoY to ₹22.64 billion, primarily led by the success of Chhaava.
Key highlights from the cinema industry:
- February 2025 was the highest-grossing February since the pandemic, with box office collections of ₹12.45 billion.
- The Hindi film industry, which had been struggling, saw a notable recovery. However, analysts suggest that consistent performance is needed to sustain growth.
- Chhaava accounted for 53% of February’s box office collection, signaling that audiences are still eager to watch movies in theaters if the content is compelling.
Additionally, recent promoter buying in PVR, though in small quantities, is seen as a positive signal. With a strong Q4FY25 lineup and a promising Hollywood slate, PVR is expected to capitalize on the growing demand for theatrical releases.
