The brokerage has retained a “Buy” rating on PVR Inox shares, with a target price of ₹1,879, an upside potential of 32% from today’s market price.

Prabhudas Lilladher in its report said even if Adipurush clocks ₹500 crore, net box office collection (NBOC) of top-grossers would be lower than previous quarter. However, the agency believes June quarter of FY24 can post a better performance than previous quarter as hopes are riding high on Adipurush.

The report noted that Ajay Devgan-starrer Bhola released on March 30 and netted ₹80 crore, which has the spill-over in Q1FY24E. “There are quite a few movies like Zara Hatke Zara Bachke (₹61 crore), Guardians of the Galaxy (₹49.4 crore), Virupaksha (₹64 crore), and Transformers-Rise of the Beast (₹31.2 crore) that have done well aiding collections for the quarter,” it noted.

During the March 2023 quarter, three regional movies were released from South. However, NBOC share of multiplexes for Southern movies is typically lower as that market is dominated by single screens.

Hollywood superhero film Flash, which is based on the DC Comics character, also released on June 16, which is likely to further boost NBOC.

PVR Inox was created after the merger of two leading cinema brands PVR and INOX Leisure, effective from February 6, 2023. The merged entity operated 361 cinemas with 1,689 screens across 115 cities till the end of FY23 in India and Sri Lanka.

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Prabhudas Lilladher report on PVR Inox

PVR Inox shares extend fall on weak reviews of Adipurush