Analysts pin hopes on Adipurush for PVR INOX's Q1 show

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PVR INOX shares are in focus on June 16 as the market is betting big on Prabhas-Kriti Sanon starrer Adipurush released today. Analysts believe the movie can set the cash registers ringing for PVR-INOX in Q1 FY24.

If Adipurush is able to net upwards of Rs 500 crore, domestic brokerage firm Prabhudas Lilladher believes PVR INOX will see a marked improvement in numbers for the current quarter, compared to the March quarter.

Domestic research firm Prabhudas Liladher Pvt Ltd has rated the PVR INOX Ltd. stock as a Buy with a target price of Rs 1879, up 25 percent from the current market price. Brokerage firm Nuvama Institutional Equities has also rated the stock a Buy, with a target price of Rs 1990.

At 11:45 am, the stock was trading at Rs 1492, down 0.45 percent from the previous close.

Nuvama Institutional Equities believes the southern India would cause a significant surge in ticket purchasing and increase revenue for the company as 31 percent of the PVR INOX’s screens are in south India with high occupancy. The firm expects a bumper opening with Adipurush and predicts ‘Satyaprem Ki Katha’ to be released on June 29 to be the next big release.

Prabhudas Liladher is optimistic about the stock as it expects better performance in Q1 FY24 with Bhola movie crossing Rs 80 crore (spill -over in Q1FY24). The other movies Zara Hatke Zara Bachke (Rs61 crore), Guardians of the Galaxy (Rs49.4 crore), Virupaksha (Rs64 crore), and Transformers-Rise of the Beast (Rs31.2 crore) have reported strong netting and can increase the NBOC for the first quarter of FY24, it said.

In the quarter ended March, the merged entity of PVR-Inox reported its first-ever quarterly numbers and it turned out to be a flop show with the multiplex chain sinking into a loss of Rs 333 crore and revenue from operations at Rs 1,143 crore. The numbers cannot be compared sequentially or on a year-on-year basis, as PVR and Inox were separate entities then.

As part of its strategy, PVR-Inox has also announced plans to close around 50 cinema screens over the next six months.

The stock has delivered a 5.33 percent return over the past one month and a negative 5 percent return over the past three months.