PVR INOX Limited

“PVR INOX dominates Indian multiplex exhibition with ~50% organized screen share, but dominance in a bad business is not an investment thesis. ROCE of 2.7% against 12%+ cost of capital, 12 years of cumulative net losses, lease-heavy leverage with 1.9x interest cover, and OTT-driven structural erosion of theatrical content exclusivity leave no path to value creation. The stock at 23x forward earnings prices in a profitability inflection that has never materialized in any cycle. India's low screen penetration is real but irrelevant when each incremental screen destroys value. Management alignment is poor — promoters hold 27.5% but have not bought at depressed levels while drawing generous compensation. This is a business where the best outcome is fair value and the base case is continued value destruction. Avoid.”