Explained: Why analysts are bullish on PVR Inox despite falling share price

PVR Inox shares fell nearly 3% in early trade on Wednesday but analysts remain bullish on the stock despite the dip. At 10:50 am, shares of the company were trading 2.76% at Rs 1,575 on the Bombay Stock Exchange (BSE).
Although PVR Inox shares have fallen over 5% this year, several brokerages are optimistic about the company after it reduced its losses in the September quarter, with management suggesting that the upcoming quarter could be one of the best in FY25.
In Q2, PVR Inox reduced its losses to Rs 11.80 crore, a significant improvement from the Rs 179 crore loss in the June quarter. Footfalls reached 3.88 crore, the second-highest for any quarter, with National Cinema Day alone drawing 10 lakh visitors. This performance has bolstered confidence among analysts that the company is on track for a strong third quarter, thanks to an impressive lineup of films and the festive season ahead.
Brokerages like Nirmal Bang and Emkay Global are bullish, citing PVR Inox’s strategic cost controls, solid pipeline of upcoming releases such as Bhool Bhulaiyaa 3, Singham Again, and Pushpa 2, and recovery in advertisement revenues.
Nirmal Bang has given the stock a ‘Buy’ rating with a target price of Rs 1,863, while Emkay Global has pegged it at Rs 1,850, noting increased occupancy rates and a healthier box office outlook for Q3.
Nuvama also remains positive, highlighting the company’s strong presence in re-released films and plans to add 110–120 new screens in FY25. They have set a target price of Rs 1,935, predicting that Q3FY25 might match PVR Inox’s best-ever quarter, Q2FY24, driven by a solid Bollywood pipeline.
Despite today’s dip, analysts believe PVR Inox’s strategic positioning and the promising film slate ahead make it a stock worth watching for the long term.