PVRINOX

As India's largest cinema chain, PVR perfectly embodies the 'K-shaped recovery' I observe in the economy—the top income bracket is thriving, fueling strong demand for luxury and entertainment, even as FMCG struggles. They’re projecting record revenues for 2024/2025, driven by a slate of blockbusters, and crucially, operating profits are improving, with net profits turning positive after years in the red. The market often waits for this bottom-line positivity, much like it did with Zomato. Despite a debt-to-equity ratio around 1.05, it’s backed by productive real estate assets. I anticipate both PE expansion and EPS growth as profitability solidifies. Any opportunity to add to this position, especially on dips, is a good one, reflecting my bullish sentiment on its turnaround and growth.