PVR shares rise as analysts bet on Bollywood content reversal after Q2 loss

The country's largest multiplex operator posted web sales of Rs 71.23 crore in the July-September period against web sales of Rs 53.38 crore in the previous three months. Attendance fell 28% sequentially, resulting in a 30% drop in sales, according to the exchange's filing.

Both the total value of the ticker and per capita spending were further affected by promotions, similar to the flat rate of seventy-five rupees on National Film Day, aimed at increasing attendance.

Ad revenue was down 9% sequentially and remains below pre-COVID-19 levels.

Net debt at the end of the second quarter increased to Rs 1.1 billion rupees compared to Rs 840 crore at the end of the first quarter of FY23 due to operating losses in the second quarter.

But management hinted that an excellent source of content for a healthy recovery will come out in the third quarter. PVR expects ad revenue to gradually pick up over the holiday season. It posted a 62% recovery in the current quarter compared to 2019. The recovery is expected to reach 70-72% of 2019 ranges by Q4.

Shares of PVR rose more than 1.1% on Tuesday, versus 1.2% within the Nifty 50. Shares rose more than 2% in intraday trading on Monday before reversing the positives to close lower in 0.20%.

Of the 31 analysts covering the company, 27 have a "buy" rating based on data from Bloomberg, two recommend "hold" and two recommend "sell." The 12-month consensus value target implies 28% upside potential.