PVR-Inox gears up for strong December with Animal, Dunki, Sam Bahadur, other movie releases; shares may see 30% upside
PVR-Inox multiplexes after a muted start to the third quarter of FY24. Along with strong December occupancy, a gradual recovery in ad revenue and ramp up in margin-accretive segment would drive operating income of the company, analysts said. Nuvama Institutional Equities has reiterated a ‘Buy’ rating on PVR-Inox shares with a target price of ₹2,210 apiece, implying an upside of 30% from Wednesday’s closing price.
The company’s December occupancy looks strong with the upcoming movie releases, including ‘Animal’ (starring Ranbir Kapoor), Dunki (starring Shah Rukh Khan), Salaar Part 1 (starring Prabhas), Sam Bahadur (starring - Vicky Kaushal) and Aquaman and the Lost Kingdom. Also Read: Arvind Fashions share price up 35% in November; Antique sees further upside; here's what the brokerage says The third quarter of FY24 started on a muted note with few movies released from October to mid-November (due to the Cricket World Cup). However, movies such as Leo (gross ₹350 crore), Fukrey 3 (net ₹95.5 crore), Tiger 3 (net ₹270 crore) and 12th Fail (net ₹50.68 crore) had a good run at the box office during this period.
With the World Cup done and dusted, Nuvama Equities expects occupancy to rebound in December. Its channel checks indicate strong numbers for ‘Animal’ ( ₹60 crore-plus on day 1). Moreover, it expects the content slate to pick up over coming months.
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