⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
PVRINOX - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.6
| Stock Code | PVRINOX | Market Cap | 9,420 Cr. | Current Price | 958 ₹ | High / Low | 1,250 ₹ |
| Book Value | 725 ₹ | Dividend Yield | 0.00 % | ROCE | 2.47 % | ROE | -4.60 % |
| Face Value | 10.0 ₹ | DMA 50 | 1,024 ₹ | DMA 200 | 1,080 ₹ | Chg in FII Hold | -0.64 % |
| Chg in DII Hold | -0.84 % | PAT Qtr | 104 Cr. | PAT Prev Qtr | -51.2 Cr. | RSI | 42.8 |
| MACD | -25.2 | Volume | 2,33,667 | Avg Vol 1Wk | 3,50,616 | Low price | 826 ₹ |
| High price | 1,250 ₹ | Debt to equity | 1.04 | 52w Index | 31.2 % | Qtr Profit Var | 938 % |
| EPS | -3.63 ₹ | Industry PE | 133 |
📊 Core Financials
- Revenue & Profitability: Quarterly PAT turned positive at ₹104 Cr. vs. -₹51.2 Cr. previously, but EPS remains negative (-₹3.63), highlighting weak profitability.
- Return Metrics: ROE at -4.60% and ROCE at 2.47% indicate poor capital efficiency.
- Debt Position: Debt-to-equity ratio at 1.04 reflects high leverage, adding financial risk.
- Cash Flow: No dividend yield (0%), limiting shareholder returns.
💹 Valuation Indicators
- P/E Ratio: Not meaningful due to negative EPS.
- P/B Ratio: Current Price ₹958 vs. Book Value ₹725 → ~1.32, trading at a moderate premium.
- PEG Ratio: Not available, limiting growth-adjusted valuation clarity.
- Intrinsic Value: Current valuation appears speculative; intrinsic value likely lower given weak returns and high debt.
🎬 Business Model & Competitive Advantage
- PVR Inox operates India’s largest multiplex chain, dependent on box office performance and discretionary consumer spending.
- Competitive advantage lies in scale, brand recognition, and premium cinema experience.
- Business remains cyclical and vulnerable to content pipeline and consumer sentiment shifts.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation range between ₹830–900, closer to 52-week low.
- Long-Term Holding: Suitable only for speculative investors betting on recovery in cinema demand; fundamentals do not support strong long-term holding at current valuation.
Positive
- Quarterly PAT turned positive (₹104 Cr.) after losses.
- Strong brand presence and market leadership in multiplex segment.
- RSI at 42.8 indicates stock is not overbought, potential rebound.
Limitation
- Negative ROE (-4.60%) and low ROCE (2.47%).
- High debt-to-equity ratio (1.04) increases financial risk.
- No dividend yield, limiting investor returns.
- Stock trading below DMA 50 (₹1,024) and DMA 200 (₹1,080), showing bearish trend.
Company Negative News
- FII holdings reduced (-0.64%) and DII holdings reduced (-0.84%), showing declining institutional confidence.
- MACD negative (-25.2), signaling bearish momentum.
Company Positive News
- Quarterly PAT improved significantly from losses to profit.
- Strong brand positioning in India’s entertainment sector.
Industry
- Entertainment industry P/E at 133, but PVR Inox has no meaningful P/E due to negative EPS.
- Sector outlook tied to box office performance, consumer spending, and content availability.
Conclusion
- PVR Inox shows recovery in quarterly profits but suffers from weak fundamentals, high debt, and negative returns.
- Valuation remains speculative, supported mainly by brand strength and industry sentiment.
- Accumulation near ₹830–900 may be considered for speculative exposure, with cautious long-term outlook until profitability stabilizes.
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