PVR Inox (PVRINOX)
TurnaroundFairStock Score: 48/100 — MIXED
Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹1,174 |
| Market Cap | ₹11,528.68 Cr |
| P/E Ratio | 41.15 |
| ROCE | 2.72% |
| ROE | 0.32% |
| Dividend Yield | 0% |
| Profit Growth | 260.72% |
| Debt/Equity | 0.92 |
| Sales Growth | 10.4% |
| Free Cash Flow | ₹1,664.2 Cr |
| Promoter Holding | 27.53% |
| 52-Week Range | ₹907.4 — ₹1,284.5 |
| Sector | Entertainment |
| Book Value | ₹750.52 |
Strengths
- Free cash flow of ₹1,664 Cr compares strongly against the ₹10,038 Cr market cap.
- Piotroski F-Score of 8/9 indicates improving financial fundamentals.
- Latest quarter sales of ₹1,880 Cr and net profit of ₹95 Cr show profitability is returning.
- Price-to-book at 1.40 is reasonable versus book value of ₹718.08.
- Sales growth of 10.98% shows the business is expanding revenue again.
Concerns
- P/E of 178.61 and EV/EBITDA of 231.56 make the stock very expensive on current earnings.
- Altman Z-Score of 1.58 points to financial stress risk.
- Debt/equity of 1.10 with ROE of 0.32% and ROCE of 2.72% reflects leverage and low returns on capital.
- No dividend and promoter holding of only 27.53% offer limited shareholder comfort.
AI Analysis
Let's start with facts: at ₹1,005, the market prices PVR Inox at ₹10,038 Cr. I like strong free cash flow—₹1,664 Cr is a huge figure against that market cap. The Piotroski score of 8/9 also tells me the business has improved from the distressed phase. Latest quarter sales of ₹1,880 Cr and net profit of ₹95 Cr show the operating engine is stabilizing. But value investing is not about quarterly spikes. The reported profit growth of 260.72% comes off a depressed base, and the trailing P/E of 178.61 tells you the market is already paying for a full recovery. A Graham disciple seeks a margin of safety. Here the balance sheet gives pause: debt/equity is 1.10, Altman Z-Score is only 1.58, and returns on capital are thin—ROE 0.32%, ROCE 2.72%. This is not a wonderful business earning high returns on tangible assets; it is a capital-intensive exhibitor recovering from near-death. The DCF figure of ₹9,072.57 is far above today's price, but with EV/EBITDA at 231.56 I cannot anchor on a model when current earnings are so low. It is a cyclical turnaround at best. The FCF and F-Score are encouraging signs; the debt load and dependence on movie releases keep me from treating this as a predictable stalwart. I would need sustained evidence of occupancy, pricing power, and deleveraging before deploying significant capital.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer