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PVR Inox share price has seen healthy gains of about 12 per cent in August (until August 28), and is set to extend its winning streak to the second consecutive month following a 3 per cent rise in July. Notably, equity benchmark Sensex has declined over 1 per cent in August after a 3 per cent fall in July.

The small-cap stock, however, has been in the red for the last two days amid a broader market selloff due to Trump tariff concerns. On Friday, August 29, PVR Inox's share price declined by over a per cent in intraday trade on the BSE.

The small-cap stock has seen healthy gains since July, but year-to-date, it has fared poorly. Till August 28, PVR Inox shares have declined over 14 per cent this year so far.

Over the last year, it has fallen by over 26 per cent, hitting a 52-week low of ₹825.65 on April 7 this year after hitting a 52-week high of ₹1,748.25 on September 27 last year.

On the other hand, the stock's gains in July and August, when the Indian stock market's performance has been negative due to tariff concerns and foreign capital outflow, have brought it under investors' radar.

Some experts find the stock a long-term buy due to a stronger box office pipeline and attractive valuation.

Brokerage firm JM Financial has a buy call on PVR Inox stock with a 12-month target price of ₹1,380, implying a 23 per cent upside potential.

The brokerage firm pointed out that the strong box office performance of Q1 has continued unabated in Q2, with July delivering the strongest month of the year ( ₹1,430 crore gross box office collections) on the back of Saiyaara, Mahavatar Narsimha and Jurassic World Rebirth.

JM Financial is optimistic about the August box office collections too and sees a strong pipeline of Bollywood, Hollywood, and regional movies, including Jolly LLB 3, Thama, Dhurandhar, Border 2, Avatar, Mortal Combat 2, Anaconda, and Kantara.

"An even stronger pipeline ahead– Jolly LLB 3, Dhurandhar, Avatar, Border 2 – makes management’s target of 150mn+ admits in FY26 increasingly probable, despite the steep ask (10 per cent YoY from Q2 and Q4 of FY26). Near-term strength aside, some of the structural concerns are fading too," said JM Financial.

The brokerage firm further pointed out that the 2025 global box office estimate of $34.9 billion (up 14 per cent YoY) was the highest since the pandemic, which indicates admissions globally are on a rebound.

"With only 12 per cent of the movies in 2024 released directly on OTT, down from 33 per cent in 2022, the economic importance of theatrical releases is getting re-established. PVR Inox’s more efficient operations mean these improving exogenous factors should translate into better cash flow and return metrics," said JM Financial.

"Flat rights-of-use assets/screen, lower increase in gross PPE (property, plant, and equipment)/screen and a sharp decline in CWIP (capital work-in-progress) in FY25 point to a more frugal capital/cost model, driving better FCF (free cash flow). The market has largely ignored that, resulting in FCF yield rising to nearly 5 per cent, +1-SD above long-term mean. That makes current valuations attractive," the brokerage firm said.

Fundamental factors indicate PVR Inox could be a buy for the next one year. Even some technical experts see favourable indicators at this juncture.

According to Jigar S. Patel, Senior Manager of Equity Research at Anand Rathi Share and Stock Brokers, PVR is currently exhibiting a well-established uptrend, as indicated by the dominance of positive DMI readings on the charts.

The stock’s structure suggests sustained buying interest, supporting the bullish momentum.

"Traders and investors can continue to hold positions, anticipating an upside move towards the ₹1,200 mark in the near term. Risk management remains crucial, and hence, a stop-loss is advised below ₹1,060 on a daily closing basis," said Patel.

"This level acts as a protective cushion against any unexpected downside. Overall, the trend remains favourable, and the stock offers a positive risk–reward setup for continuation of the ongoing momentum," Patel said.

Hardik Matalia, a derivative analyst at Choice Broking, highlighted that PVR Inox, after witnessing a steep decline of nearly 48 per cent from its highs, has entered into a consolidation phase. This phase is gradually taking the shape of a rounding bottom formation on the daily timeframe. However, the stock is facing repeated rejection near its breakout zone around ₹1,150.

Matalia believes a sustainable move above ₹1,150 will be crucial to confirm the breakout, which could then pave the way for further upside momentum.

The stock is currently trading above all its key short-term, medium-term, and long-term moving averages, signalling underlying strength. However, Matalia said if the stock falls back below these averages, it may slip again into a sideways trajectory.

The Relative Strength Index (RSI) stands at 61.32, showing a mild downward bias. This indicates that the stock may undergo either a time-wise or price-wise correction before resuming any strong uptrend.

"For short-term traders, it is advisable to consider fresh buying only after a confirmed breakout above ₹1,150. Long-term investors, on the other hand, may look to accumulate gradually from current levels, with the strategy of adding more on dips for a long-term investment perspective," said Matalia.

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stories by Nishant Kumar

Disclaimer: This story is for educational purposes only. The views and recommendations expressed are those of individual analysts or broking firms, not Mint. We advise investors to consult with certified experts before making any investment decisions, as market conditions can change rapidly and circumstances may vary.

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