India's PVR INOX rises after Ambit Capital upgrades to 'buy', raises TP

PVR INOX

28/04/2026 08:57

** PVR INOX PVRL.NS shares rise 5.3% to 1,073 rupees, set for their best session since early January

** Brokerage Ambit Capital raises rating to "buy" from "sell" and TP to 1,232 rupees, a 21% upside to stock's last close

** Says newer capex models should limit PVR Inox's FY27–30 capex to 20% of post-rent EBITDA versus 100% in FY24–25, enabling 10% FCF CAGR in FY26–30 without equity dilution risk

** Brokerage believes this level is sustainable because mall owners have limited alternative cinema-exhibition partners to fall back on

** Expects occupancy levels to stay about 26% for the next decade

** Says slowing OTT funding has halved direct OTT releases and expects PVR Inox to benefit from these funding constraints, as platforms increasingly license films only after box-office performance, easing content pressure and occupancy volatility

** YTD, PVRL up 4.4%

 (Reporting by Abhinav Parmar in Bengaluru)

 ((Abhinav.Parmar@thomsonreuters.com;))