PVR Inox stock dances to Stree 2's tunes; rises 4%

PVR Inox shares are up over 16 percent in the past three months.

Shares of PVR Inox surged 4 percent on August 19, buoyed by the strong collections registered by Shraddha Kapoor and Rajkummar Rao's Stree 2 over the weekend.

At 10.44 am, shares of PVR Inox were trading at Rs 1,534.75, slightly off its day's high of Rs 1,562.40 on the NSE.

The Shraddha Kapoor and Rajkummar Rao starrer horror-comedy has been gaining strong traction from viewers as it is inching closer to the Rs 200 crore box office collection mark in India.

According to a report from Sacnilk.com Stree 2 earned an estimated Rs 190.55 crore net in India over four days. On Sunday, the film saw an overall 70.41 percent occupancy for Hindi shows, with Bengaluru topping the charts at 84 percent.

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Brokerage firm Geojit Financial Services remains positive over PVR Inox despite the company's weak Q1 numbers. According to the brokerage, the multiplex chain's weak performance was due to postponement of several releases to Q2 and Q3, which were expected to boost revenues.

"The festival season demand looks promising, supported by a strong content pipeline. The lower-than-expected Q1 performance led to a downward revision of our estimates. However, the long-term outlook remains positive due to a strong content pipeline with re-releases," the firm added. In addition to that, Geojit also likes the appealing valuation of the stock. "As a result, we are revising our rating to accumulate while maintaining the target price at Rs 1,709," the brokerage stated.

Meanwhile, PVR Inox is also working on a strategy of re-releasing critically acclaimed films, which has been doing wonders for the company. Its recent re-release wonder has been Sajid Ali directed Laila Majnu, which surpassed its original lifetime box office collections with the re-release. Previously, films like Imtiaz Ali's Jab We Met and Rockstar were also re-released.