PVRINOX - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.8
| Stock Code | PVRINOX | Market Cap | 9,632 Cr. | Current Price | 982 ₹ | High / Low | 1,250 ₹ |
| Stock P/E | 46.8 | Book Value | 747 ₹ | Dividend Yield | 0.00 % | ROCE | 6.80 % |
| ROE | 2.86 % | Face Value | 10.0 ₹ | DMA 50 | 1,007 ₹ | DMA 200 | 1,041 ₹ |
| Chg in FII Hold | -3.30 % | Chg in DII Hold | 1.92 % | PAT Qtr | 19.0 Cr. | PAT Prev Qtr | 127 Cr. |
| RSI | 40.5 | MACD | -1.05 | Volume | 2,23,957 | Avg Vol 1Wk | 1,52,733 |
| Low price | 900 ₹ | High price | 1,250 ₹ | PEG Ratio | 1.26 | Debt to equity | 0.92 |
| 52w Index | 23.4 % | Qtr Profit Var | 116 % | EPS | 27.3 ₹ | Industry PE | 96.8 |
📊 Financial Overview: PVR Inox has a market cap of ₹9,632 Cr with a current price of ₹982. The 52-week range is ₹1,250–900. Profitability is weak with ROE at 2.86% and ROCE at 6.80%. Debt-to-equity ratio of 0.92 indicates high leverage. PAT fell sharply to ₹19 Cr from ₹127 Cr, showing earnings volatility. EPS is ₹27.3, reflecting modest earnings relative to valuation.
💰 Valuation Indicators: Stock P/E is 46.8, below the industry average of 96.8, suggesting moderate valuation. Book value is ₹747, giving a P/B ratio of ~1.31. PEG ratio of 1.26 indicates valuation is slightly stretched relative to growth. Dividend yield is 0%, offering no shareholder returns. Intrinsic value appears lower than current price, limiting margin of safety.
🎬 Business Model & Competitive Advantage: PVR Inox operates multiplex cinemas across India. Its competitive advantage lies in brand leadership, wide presence, and premium movie experience. However, profitability challenges, high debt, and dependence on box office performance limit overall health.
📈 Entry Zone & Long-Term Guidance: The stock looks fairly valued but risky due to weak fundamentals. A better entry zone would be ₹900–950, closer to support levels. Long-term holding depends on recovery in movie attendance, margin improvement, and debt reduction; currently, cautious monitoring is advised.
Positive
- 🎬 [Market Leadership](ca://s?q=PVR_Inox_business_model): Strong presence in multiplex cinema industry.
- 📊 [DII Support](ca://s?q=PVR_Inox_DII_holdings): DII holdings increased by +1.92%.
- 📈 [Industry Premium](ca://s?q=PVR_Inox_industry_PE): Industry PE at 96.8, higher than PVR Inox’s PE of 46.8.
Limitation
- ⚖️ [Weak Returns](ca://s?q=PVR_Inox_ROE_ROCE): ROE at 2.86% and ROCE at 6.80% are below industry standards.
- 📉 [Profit Decline](ca://s?q=PVR_Inox_quarterly_profit): PAT fell from ₹127 Cr to ₹19 Cr QoQ.
- 💸 [No Dividend](ca://s?q=PVR_Inox_dividend_policy): Dividend yield of 0% offers no shareholder returns.
Company Negative News
- 📉 [FII Exit](ca://s?q=PVR_Inox_FII_holdings): FII holdings decreased by -3.30%.
- 📊 [Profit Volatility](ca://s?q=PVR_Inox_profit_variation): Quarterly profit variation at 116% shows instability.
Company Positive News
- 📈 [DII Support](ca://s?q=PVR_Inox_DII_holdings): DII holdings increased by +1.92%.
- 📊 [Technical Levels](ca://s?q=PVR_Inox_DMA_levels): Current price near DMA 50 (₹1,007) and DMA 200 (₹1,041) indicates technical support.
Industry
- 🎬 [Entertainment Sector](ca://s?q=India_entertainment_industry): Industry PE at 96.8, showing premium valuation compared to PVR Inox.
- 📊 [Growth Drivers](ca://s?q=India_cinema_industry_growth): Rising demand for premium movie experiences supports sector expansion.
Conclusion
⚖️ PVR Inox’s fundamentals are weak with low profitability, high debt, and volatile profits. While brand leadership and industry premium are positives, valuation concerns and poor return ratios limit attractiveness. Entry is advisable only near ₹900–950 for better risk-reward. Long-term holding depends on recovery in movie attendance and margin improvement; currently, cautious monitoring is recommended.