PVR Inox shares jump 26% in 3 months on solid show by Gadar 2, Jailer, others

PVR Inox share price has seen a decent rally with the stock surging more than 26% in the last three months. The rally in PVR Inox shares comes amid hopes of shoring up revenues on the back of robust box office collections of recently released films.

PVR Inox shares have remained mostly flat in 2023 so far, but have started gaining momentum since the beginning of Q2FY24. PVR shares have risen over 15% in the last one month.

The July-September quarter had a strong start with movies like Mission Impossible – 7 and Oppenheimer doing well at box office (BO). Subsequently, Gadar-2 and Jailor stormed the BO with collections of 410 crore and 290 crore, respectively. 

Also Read: Buy TCS, LTIMindtree, Infosys; Sell Wipro, Tech Mahindra, says Goldman Sachs as it initiates coverage on 6 IT stocks

So far, six movies have already breached the net box office collection (NBOC) mark of 100 crore in Q2FY24. In fact, given sharp turn-around in Bollywood, industry wide NBOCs stood at around 1,830 crore in the first two  months of Q2FY24, according to brokerage firm Prabhudas Lilladher.

This is as compared to the industry wide NBOC of around 1,870 crore and 1,860 crore in Q2FY23 and Q1FY24, respectively.

Moreover, movies like Dream Girl-2, Jawan and Salaar are set to release in Q2FY24. Further, flicks like Gadar-2, Oh My God-2 and Jailer are still continuing their theatrical run and thus we expect industry wide NBOCs to be healthy in this quarter. 

Also Read: Gadar 2 Box Office collection Day 13: Sunny Deol’s blockbuster all set to cross 420 crore

On a conservative basis, if we assume industry NBOC of 750 crore in the balance 38 days (August 24 to September 30), Q2FY24 may well end with a figure of 2,580 crore. In Q1FY24, PVR-Inox’s share in industry-wide NBOC was around 37%.

“Based on these assumptions NBOC of PVR-Inox might well turn out to be 830 crore in Q2FY24. Assuming a 3% sequential growth, net ATP can be at 211. This would imply footfalls of 39.2 million in Q2FY24,” said Jinesh Joshi – Research Analyst, Prabhudas Lilladher.

If footfalls indeed turn out to be 39.2 million (10% short of Q1FY23), Q2FY24 might well turn out to be an exceptionally strong quarter, if not the best ever, Joshi added.

Overall, the analyst expects Q2FY24 to register sharp improvement in performance. The brokerage retained ‘Buy’ rating on PVR Inox with a target price of 1,797 per share.

At 12:30 pm, PVR Inox share price was trading 0.69% higher at 1,720.00 apiece on the BSE.

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Updated: 24 Aug 2023, 12:50 PM IST

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