PVR Inox correction 'overdone', Kotak says citing strong Q3 occupancy

Shares of PVR Inox Ltd. gained as much as 3% on Friday, January 2, after brokerage firm Kotak Institutional Equities reiterated its 'Buy' rating on the stock and maintained a price target of ₹1,380 per share.

Kotak expects the December quarter to be the second straight quarter with over 27% occupancy and mid-teen EBITDA margins, excluding the impact of lease accounting.

The brokerage said that industry gross box office collections in Q3 were largely in line with Q2, despite the underperformance of Avatar relative to expectations.

It added that the Q4 movie pipeline looks strong and could pose an upside risk to its FY26 EBITDA estimates.

Kotak said the recent correction in the stock appears overdone, especially in light of improving cinema-going trends and steady free cash flow generation led by capital-light expansion.

Of the 21 analysts tracking PVR Inox, 16 have a 'Buy' rating, four recommend 'Hold', and one has a 'Sell' call on the stock.

PVR Inox shares are now trading 1.03% higher at ₹1,027.50. The stock is down about 22% over the past one year.