PVR Inox stock falls 13% in 2024 due to dearth of blockbuster movies; is this the right time to invest?

livemint.com:

Inox has shown signs of recovery in June, with the stock rising nearly 10%. This uptick follows a slight decline of 3.8 percent in May.Before that, the stock had risen by 2.6 percent in April but faced losses in the first three months of the year.

It declined by 3.3 percent in March, 5.8 percent in February, and 12.3 percent in January.Overall, in 2024, the stock has declined 13 percent while it has been flat in the last 1 year, down 0.23 percent.Moreover, currently at ₹1,436.85, the stock is 23.5 percent away from its 52-week high of ₹1,879.75, hit on September 8, 2023. Meanwhile, it has advanced over 19 percent from its 52-week low of 1,203.70, hit on June 4, 2024.Amid a scarcity of blockbuster movies and a pivot towards cricket, is now the opportune moment to invest in this theatre stock? Here's a comprehensive analysis of its fundamental and technical outlook.Brokerage house Emkay has retained its ‘buy’ call on PVR Inox with a target price of ₹1,650, implying an over 15 percent upside.

As per the brokerage, the dearth of movies is pulling down the performance of the stock."PVR Inox’s weak stock performance reflects the lack of major movie releases over the last couple of quarters. After a subpar Q4FY24, Q1FY25 is also turning out to be a damp squib, with the IPL, the T20 World Cup, and the general elections being hurdles for movie releases.

The chain’s high fixed-cost structure has aggravated this issue, hitting profitability. The company should see some respite ahead, as the pipeline has improved, even though mega-star movies are likely to be released only in CY25," said the brokerage.It further noted that the management has started taking initiatives on both, the revenue and cost fronts, aimed at maximising