PVR Shares Down 5% After Investors Offload 9% Equity; Should you Buy, Sell or Hold?


PVR Share Price Today: Shares of PVR dropped 5 per cent to Rs 1,838 on the BSE in Thursday’s intra-day trade, after investors offloaded 9 per cent stake in the company via a block deal on Thursday. In comparison, the S&P BSE Sensex was down 0.46 per cent at 60,067 points. In the past three days, the stock gained 5 per cent.

Till 10:57 am; a combined 10.25 million equity shares, representing 16.78 per cent of the total equity of PVR, changed hands on the NSE and BSE, data shows. The names of the buyers and sellers were not ascertained immediately. With Thursday’s decline, the stock corrected 17 per cent, from its 52-week high level of Rs 2,211.55, that it had touched on August 4, 2022.

Sources told CNBC TV-18 that the investors who sold the stake in the company are Multiples PE, Grey Birch, Plenty PE and Berry Invt.

As per June 2022 shareholding pattern, Gray Brich Investment held 2.2 million (3.6 per cent), while Plenty Private Equity FII held 1.52 million (2.5 per cent) stake in PVR.

The stock had been gaining after massive earnings from the movie Brahmastra. The stock also got steam after the Competition Commission of India (CCI) rejected a complaint against the proposed merger of PVR and INOX Leisure, saying apprehension of the likelihood of anti-competitive practices by an entity cannot be a subject of a probe.

The CCI complaint by CUTS, filed on July 27, alleged that the PVR-Inox agreement would not have qualified for an exemption from the necessary merger review by the regulator if it weren’t for COVID-19 lockdowns. The group waits to hear from the CCI.

The two companies’ boards — the country’s largest multiplex chain operators — approved an all-stock merger to create a film exhibition entity with a network of more than 1,500 screens.

What Should Investors Do?

Meanwhile, after a successful April-June quarter in this fiscal year (Q1FY23), the overall box office collections tapered meaningfully due to poor performance of mega-budget films in the ongoing Q2FY23, analysts said.

“As regards content, while Bollywood has seen a trough in the past, it is witnessing deterioration in movie collections again this time round. Going ahead too, while the movie pipeline looks healthy, audience acceptance is key. If Bollywood content performance continues to be poor going ahead, it would lead to further earnings cut as well as de-rating for PVR and Inox. A timely merger remains crucial,” analysts at Emkay Global Financial Services said, after they trimmed FY23 revenue estimates for PVR/Inox by 11-12 per cent, but maintained FY24/FY25 estimates, on hopes of trend-reversal in the Bollywood content delivery.

Disclaimer: The views and investment tips by experts in this News18.com report are their own and not those of the website or its management. Users are advised to check with certified experts before taking any investment decisions.

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