Stock In Action - PVR INOX

Highlights

1- PVR INOX's financial performance has shown improvement over the past year in net profit.
2- PVR INOX share price analysis indicates a bullish trend in the market.
3- PVR INOX's quarterly earnings report highlights company is facing financial challenges.
4- PVR INOX's gains recently from ₹1200 to ₹1500 in June month including today’s gain.
5- For PVR INOX's stock, analyst forecasts positive trends for the future.
6- PVR INOX is currently trading at ₹1500, showing 5.08% increase as of 11:06 am on NSE.
7- PVR INOX share price is rising after making a double bottom, PVR INOX share is down 9.41% YTD.
8- PVR INOX's stock performance has been flat, gaining only 9% over the past year.
9- A comparison of Nifty gains reveals that PVR INOX's growth of 9% underperformed NIFTY's 27% gain over the past year.
10- ICICI Securities has retained its buy rating on PVR INOX, setting a target price of ₹2240.

Why Should I Invest in PVR INOX Shares

Investing in PVR INOX shares requires a good understanding of its financial health, market position & risks.

PVR INOX's Financial Performance

From March 2021 to March 2024, PVR INOX's net profit showed a gradual improvement. In March 2021, the company reported a net loss of ₹748 crores which reduced to ₹489 crores in March 2022, ₹336 crores in March 2023 and further to ₹33 crores in March 2024. Correspondingly, the earnings per share (EPS) also improved going from a negative ₹123.07 in March 2021 to -₹80.04 in March 2022, -₹34.20 in March 2023 and -₹3.26 in March 2024.

Analyst Recommendations

ICICI Securities has issued a buy call on PVR INOX with a target price of ₹2240. Currently, the market price of PVR INOX Ltd. is ₹1500. As of March 2024, the company's ownership structure includes 27.84% held by promoters, 16.80% by foreign institutional investors (FIIs) and 40.21% by domestic institutional investors (DIIs).

Valuation Metrics

As of March 2024, PVR Inox had a negative return on equity (ROE) of -0.44% and a modest return on capital employed (ROCE) of 4.82%. Earnings per share for March 2024 was -₹13.20. Price to earnings (PE) ratio showed zero indicating that the company's earnings were insufficient to establish a PE ratio against its current market price. On the financial side net cash flow improved from a deficit of -₹169 crores in March 2023 to a positive ₹60 crores in March 2024, signaling an increase in cash generation during the year.

Technical Chart

Technically, after forming a double bottom on the weekly chart and hitting a low of ₹1250 in June, PVR INOX stock has shown recovery trading above its 20 day and 50 day Exponential Moving Averages (EMA) indicating a positive trend. This upward movement is supported by strong volume. PVR INOX Stock has rebounded from ₹1250 to ₹1500 in June alone suggesting that momentum may be just beginning. ICICI Securities has issued a buy call on PVR INOX with a target price of ₹2240.

Conclusion

Investing in PVR INOX shares offers opportunities for both traders and long term investors. The company has shown positive market performance and has received a favorable outlook from brokerages. As of March 2024, promoters hold 27.84% of PVR INOX, out of which 5.27% is pledged. This marks an increase from the previous quarter where the pledged percentage stood at 4.17%.

However, before making investment decisions investors should carefully analyze PVR INOX's financial statements and track its technical performance. It's also important to monitor how the company performs compared to the benchmark index.