PVR Inox shares trade lower despite opening new multiplex
Shares of PVR Inox, the largest multiplex operator in India, traded marginally lower in early hours on September 11, despite the company opening a four-screen theatre at Smart City Mall in Dharwad, Karnataka.
The stock was trading at ₹1,844.95, down ₹2.90, or 0.16%, on the BSE at 9:25am.
PVR Inox has 1,708 screens across 361 properties in 115 cities in India and Sri Lanka. The company has been expanding its network of screens aggressively since the merger with INOX Leisure in March 2022.
In the April-June quarter, the company reported a 32% increase in revenues year-on-year to ₹1,324 crore. The company is also planning to launch new formats such as the ICE theatres, which was launched in July at Forum Mall in Bengaluru.
The ICE theatres are equipped with advanced technology that offers a more immersive viewing experience. The company has also been investing in other areas, such as digital cinema and food and beverage.
Despite the positive news, PVR Inox shares traded lower on September 11, likely due to profit booking by investors. However, the long-term outlook for the company remains positive, given its strong growth prospects.
The company is expected to benefit from the growing demand for multiplexes in India. The Indian multiplex industry is expected to grow at a CAGR of 12% to reach 10,000 screens by 2025. PVR Inox is well-positioned to capitalize on this growth, given its strong brand and market share.
The company is also benefiting from the increasing popularity of digital cinema. Digital cinema offers a better viewing experience and is more cost-effective than traditional film projection. PVR Inox has been investing heavily in digital cinema and is now one of the leading players in the segment.
In addition, the company is expanding its food and beverage business. The food and beverage business is a major source of revenue for multiplex operators and PVR Inox is looking to grow this business further.
Overall, PVR Inox is a well-positioned company with strong growth prospects. The company is expected to continue to grow in the coming years, driven by the growing demand for multiplexes, digital cinema, and food and beverage.
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