PVR Inox shares at 52-week high, already up 45% in 6 months - Is there more steam left in cinema stock? Experts say this

Year-to-date, the cinema stock has gained 41%, while over the last one year, it has given a return of 24%, hitting a 52-week high today (22 October) and a 52-week low of ₹900.05 on 2 March.Is there more steam left in the stock?According to brokerage firm Motilal Oswal Financial Services, PVR is benefiting from a more diversified content mix, with improvement in the mid-budget Bollywood slate, recovery in Hollywood, and steadily improving regional content.Further, the brokerage firm added that the company’s robust cost controls and merger synergies have led to improvement in screen economics and led to significant deleveraging over the last few years.Ravi Singh, Chief Research Officer at Master Capital Services, underscored that PVR Inox is currently trading at 43 times P/E.

The stock may become fundamentally attractive at around 38 times P/E for investors seeking long-term opportunities, said Singh.On the technical front, Jigar S. Patel, Senior Manager of Equity Technical Research at Anand Rathi Share and Stock Brokers, underscored that PVR appears technically overextended after its recent upward move.The weekly Relative Strength Index (RSI) has approached the 80 mark, an extremely elevated reading that indicates stretched momentum and raises the possibility of consolidation or a corrective phase, said Patel.He added that although the recent price action on the daily chart looks promising, the RSI has failed to cross the crucial 70 mark, suggesting that the underlying buying momentum may not be as strong as the price movement indicates.

"This divergence in momentum warrants caution at current levels. Traders holding the stock may consider booking partial or complete profits to protect gains. Fresh long positions should be avoided for now, as the risk-reward ratio appears unfavourable. A fresh entry should be considered only after healthy consolidation and renewed confirmation of bullish momentum," said Patel. Deepesh Sarawagi, a technical research analyst at Choice Broking, said PVR share price is showing a strong recovery from its previous lows and a significant improvement in price momentum on the weekly chart.

In the daily timeframe, the stock has established a higher-high and higher-low formation in recent months, reflecting a gradual shift in its trend structure. Sarawagi underscored that the stock is trading above its 20-, 50-, 100-, and 200-day EMAs, indicating strengthening price action across multiple timeframes. However, the RSI is in the overbought zone, suggesting the possibility of near-term consolidation or intermittent profit booking following the recent rally.

"The ₹1,450– ₹1,500 zone may act as an immediate resistance area, while the ₹1,300– ₹1,250 region could provide support during pullbacks aligned with 50-day EMA support. Sustained trading above the key EMA support levels would help preserve the current upward momentum, whereas a breakdown below these levels may weaken the technical setup," said Sarawagi.