Multiplex chain PVR Inox Ltd shares advanced more than 1.5 percent on Thursday, taking its total gains in the past month to over 15 percent amid a revival in the movie business following the huge success of films like Gadar 2 and release of superstar Shahrukh Khan’s movie Jawan today.
Multiplex chains and single screens have seen the return of footfalls reminiscent of pre-Covid-era after the success of Sunny Deol-starrer Gadar 2 which has breached the Rs 500 crore revenue mark.
The movie released on August 11 entered the Rs 500 crore club on 24th day of release, faster than Shahrukh Khan’s Pathaan, which reached the milestone on the 28th day.
Shares of PVR Inox, which is the largest and premium film exhibitor with 1708 screens across 115 cities in India and Sri Lanka, have soared around 15 percent in the past month. The stock hit a high of Rs 1,869 per share on Thursday, around 5 percent down from its year’s high level.
The stock previously traded at a 52-week high of Rs 1,974.75 on September 14, 2022.
Speaking to CNBC-TV18, Jinesh Joshi of Prabhudas Lilladher said that PVR valuations are at 15 times for the financial year 2025. “If you look at PVR currently, we are expecting Pre-Ind AS EBITDA of approximately Rs 1,300 crore for FY25 and on that the stock is at about 15 times. Historically, it has traded at an even higher multiple. And as I mentioned previously, with the content being exceptionally strong in this quarter and Jawan’s advance booking numbers also raising the hopes, we indeed see a rerating possibility even from here on.” He expects an upside of 10-15 percent.
Positive reviews of Shahrukh Khan-starrer Jawan movie have also raised the expectation of another hit which would bode well for movie exhibitors.
“If Jawan emerges to be a blockbuster, you could see a scenario wherein occupancy levels are above pre-COVID levels, and not only towards the COVID levels. So that is a very big sign of respite and that could lead to a further upgrade,”said Karan Taurani of Elara Capital. To put things in perspective, Taurani said that one percent change in occupancy is equal to Rs 80-90 crore effect on EBITDA.
The movie premiered at 5 AM on Thursday and fans have celebrated the movie on both social media as well as at movie halls. The Shah Rukh Khan film grossed more than Rs 50 crore worldwide in advance booking ahead of its release.
PVR Inox shares were trading 1.68 percent higher at Rs 1858 on BSE at 10.06 AM.
(Edited by : Asmita Pant)
First Published: Sept 7, 2023 11:13 AM IST
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