PVR-INOX shares rise 5% on record box office collections of Gadar 2, OMG 2 and Jailer

Shares of PVR-Inox rallied as much as 5.3% to hit an intraday high of ₹1,725 apiece on the BSE, after the country's largest cinema exhibitor earned the highest-ever gross box office revenue of more than ₹100 crore between August 11 and August 13. 

The share price of the cinema exhibitor opened higher at ₹1,665.05, up 1.7%, as against the closing price of the previous session at ₹1,636.85. At 12:19 pm, shares of the company were trading higher by 5.08% at ₹1,720. At present, the company's shares are trading 16.7% lower than the 52-week high of ₹2,068, which the company touched on August 12 last year. The company's share price is trading 28.6% lower than the 52-week low of ₹1,336.50, which the company touched on May 17 this year. During the session in early trade, the company's market capitalisation stood at ₹16,852.01 crore with 25,992 shares exchanging hands on the BSE as against the two-week average of 0.61 lakh shares.

According to the company, on August 13 alone, PVR-INOX earned ₹39.5 crore as gross box office revenue.

"These feats were achieved on the back of solid box office performances from the stellar content released last week including 'Gadar 2' (Hindi), 'Jailer' (Tamil) & 'OMG2' (Hindi) and continued success of content released in earlier weeks including 'Rocky aur Rani ki Prem Kahani' (Hindi) and 'Oppenheimer' (English) which continued their steady performance. This record-setting result validates that consumer enthusiasm for experiencing films in an immersive, larger-than-life, cinematic environment is as strong as ever," says the cinema exhibitor.

Analysts at rating agency Prabhudas Lilladher have retained a ‘BUY’ rating with a target price of ₹1,797.

"Gadar-2 lives up to its name and creates a HAVOC at BO by minting ₹1.35 billion in the opening weekend itself (3 days). It is now the 2nd highest opener of 2023 after Pathaan. As there is a holiday on account of Independence Day tomorrow one can expect a FULL HOUSE as the movie theme surrounds patriotism. Given such a solid start, Gadar-2 can easily surpass ₹2 billion+ in lifetime collections. Jailor, another highly anticipated movie, starring Rajnikanth has also stormed the BO with collections of ₹1.46 billion in the extended opening weekend," says Jinesh Joshi – research analyst, Prabhudas Lilladher.

"After a slow start, Oh My God-2 picked up pace on Sunday and has netted ₹0.43 billion so far. Given good word of mouth and audience reviews, we expect the movie to pick up pace in the second leg of its theatrical run. Bhola Shankar, starring Chiranjeevi has got a weak response with collections of ₹0.24 billion in opening weekend. Collectively these 4 movies have netted ₹3.5 billion in opening weekend itself. Further, with movies like Dream Girl-2, Jawan and Salaar due for release in 2QFY24, we expect a sharp improvement in BO performance this quarter. Retain BUY on PVR-Inox with a TP of ₹1,797," he adds.

In the first quarter of FY24, the company reported a consolidated net loss of ₹82 crore for the quarter ended June 30, 2023, compared with a profit of ₹53.2 crore in the year-ago period. However, the loss narrowed sequentially as compared to the loss of ₹334 crore in Q4FY23. The consolidated total revenue stood at ₹1,329.8 crore as against ₹1,002.3 crore in Q1FY23 and ₹1,164.9 crore in Q4FY23.