Shares of PVR Inox surged close to 4 percent on September 5, extending gains to the third session in a row. The upmove in the stock was triggered by upbeat sentiment around the company's prospects following strong box office collections of recently released movies.
At 2.02 pm, shares of PVR Inox were trading at Rs 1,575.25 on the NSE, slightly off its day's high of Rs 1,582.40, which also happens to be the highest level in eight months.
A slew of recent big blockbuster movies like Deadpool versus Wolverine, Stree 2 and Kalki 2898 AD have attracted huge box office sales, which are expected to aid PVR Inox's earnings.
Additionally, the multiplex operator has found success by re-releasing past critically acclaimed films. The recent re-release of Sajid Ali's Laila Majnu even surpassed its original lifetime box office earnings. Earlier, films like Imtiaz Ali's Jab We Met and Rockstar were brought back to theaters, while Anurag Kashyap's highly popular Gangs of Wasseypur 1 and 2 is the latest addition to the list.
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The company also plans to close 70 underperforming screens in FY25 and explore potential monetisation of non-core real estate in key locations like Mumbai, Pune, and Vadodara, in a chase for more profitable growth.
Alongside, it also aims to add 120 new screens in FY25, with around 40 percent of those additions in South India, where the company has a strategic focus on this underpenetrated market as part of its medium- to long-term plans.
Additionally, PVR Inox is also moving towards a capital-light growth model, aiming to reduce its capex on new screen additions by 25-30 percent in the current fiscal year.
Also Read | PVR Inox stock dances to Stree 2's tunes; rises 4%
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