YES Securities has initiated coverage on PVR INOX Ltd. with a ‘Buy’ rating and a target price of ₹1,980, implying a potential upside of 37% from the current market price of ₹1,445. The brokerage lauds the company’s resilience and adaptability in navigating the challenges faced by the movie exhibition industry.
YES Securities believes the worst is behind for the sector, with a revival in occupancy rates and improved footfalls expected to benefit PVR INOX, given its market leadership and pan-India presence. The reduced threat of over-the-top (OTT) platforms, as consumers increasingly prefer the theatrical experience for quality content, further supports the company’s growth outlook.
Key drivers for the bullish stance include cost rationalization initiatives that enhance margins and improvements in return on capital employed (ROCE). Valuing the stock at a FY27 EV/EBITDA multiple of 14x, YES Securities reiterates its confidence in PVR INOX’s potential to capitalize on the industry’s recovery.
