PVR INOX: Strong box office run continues, says Sharekhan; retains 'buy' rating
PVR INOX, the country's largest multiplex network operators, with an unchanged price target of ₹2,200 apiece, citing strong box office (BO) collections led by a strong content pipeline across languages. This target reflects an upside of 27.38% for the stock from its current trading price of ₹1,727.
Despite World Cup Cricket 2023, ‘Tiger 3’ in Hindi and ‘Leo’ in Tamil dominated box office collections in October and November. Notably, the momentum continued into December, with stellar contributions from ‘Animal’ and ‘Sam Bahadur’, amassing net BO collections of ₹518 crore and ₹78 crore, respectively, the brokerage said.
Also Read: Indian stock market: How big is the Covid risk for equities? Experts answer It expects growth in BO collections to continue in the current quarter with the upcoming releases: ‘Dunki’ (Hindi), ‘Salaar’ (Telugu), ‘Aquaman and the Lost Kingdom' (Hollywood), ‘Neru’ (Malayalam), and ‘Kabuliwala’ (Bengali). "BO is expected to witness strong collections from the continuation of release of a strong content pipeline in Q4FY24.
Movies like Fighter, Kalki 2898 AD and Untitled in Hindi, while The Book of Clearance, Kungfu Panda 4, and Snow white in English and Captain Miller in regional language are expected to drive footfalls to cinemas and multiplexes," said the brokerage. Furthermore, Sharekhan foresees a resurgence in advertising income, which experienced a lull in the previous quarters up to Q2FY24.
This uptick is expected to align with the continued triumph of box office successes and the launch of compelling films. Also Read: Nifty 50 valuations are rich, offer limited upside in 2024, says HDFC Securities The ongoing merger is anticipated to contribute to steady enhancements in operating metrics and
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