India's PVR climbs on potential synergy benefits from Inox Leisure merger

PVR INOX

15/03/2023 07:20

** Shares of PVR  PVRL.NS  rise as much as 3.09% to 1,575
rupees, post highest intraday gains since Jan. 27
    ** Domestic brokerage firm Prabhudas Lilladher raises its
core profit estimates for PVR-Inox Leisure merged entity by 7%
and 7.5% for FY24 and FY25, respectively
    ** Synergy benefits of 2 bln rupees due to the merger to
accrue over next two years, according to Prabhudas Lilladher
    ** "Merger expected to lend invincible size advantage to the
merged entity, enhance balance sheet strenth and improve
bargaining power"
    ** Motilal Oswal says co will focus on integration of
business operations and working synergies optimisation across
revenue and costs, after the merger
    ** About 2.25 bln rupees of synergic benefits are expected
to flow within the next 24 months - Motilal Oswal
    ** Trading volume is 466,500 shares as of 12:36 p.m. IST,
1.1x the 30-day avg - Refinitiv data
    ** 22 analysts tracking stock rate it 'buy' or higher, one
'sell' and two 'hold;' median TP is 2,088 rupees - Refinitiv

 (Reporting by Bharath Rajeswaran in Bengaluru)
 ((bharath.rajeswaran@thomsonreuters.com; +91 9769003463))