PVR INOX shares gained over 1% on Thursday, coinciding with the release of the Shah Rukh Khan-starrer Jawan in theatres.
What Happened: Shah Rukh Khan’s latest film releases to much fanfare on Thursday and is expected to rake in massive earnings, which could translate to full theatres and strong performance for cinema chain PVR INOX.
The film is expected to have a blockbuster opening day with earnings reaching ₹60 crore, according to a report by Elara Capital.
Anaylsts’ Point Of View: Analysts at Elara Capital said Jawan may breach the upper end of this forecast if the content is good and strikes a chord with the audience. This film is set to have a strong recall in southern markets too, as it is directed by Atlee Kumar, a Tamil filmmaker.
Jawan has been produced by Shah Rukh Khan’s wife, Gauri Khan, and Gaurav Verma under the banner of Red Chillies Entertainment.
Get all the latest Share Market trends and news to set you up for the week ahead.
Elara Capital holds a “buy” rating on PVR INOX with a target price of ₹2,050. The brokerage firm anticipates that the profitability of PVR INOX will be at its highest during the July-to-September quarter due to improved advertising, revenue growth, sustained metrics, and healthy occupancy.
Further, in the same quarter, it expects the Hindi box office to reach its highest point since the onset of the COVID-19 pandemic. Multiplex occupancy is predicted to approach pre-Covid level of 32% for the merged company, resulting in a 31% growth in net Hindi Box Office compared to the pre-Covid period.
Price Action: PVR INOX shares were up 1.26% at ₹1849.40 in morning trade on Thursday.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.