Shares of PVR Inox jumped more than 4 per cent to ₹1,561.7 during Monday's intraday trading on the BSE, fueled by the strong box office performance of the horror-comedy Stree 2 over the weekend.
The film, featuring Shraddha Kapoor and Rajkummar Rao, has gained substantial momentum, surpassing the ₹200 crore mark in box office earnings.
As reported by Maddock Films, the production company behind Stree 2, the film has achieved a total net collection of ₹204 crore, with its gross box office collection (GBO) reaching ₹283 crore as of August 18. The GBO in India amounted to ₹240 crore, while the overseas GBO was ₹43 crore.
In July, PVR Inox implemented measures to reduce risk in its multiplex business by transitioning its cost structures "from fixed to as variable as possible," according to Executive Director Sanjeev Bijli. This approach is designed to safeguard profitability at the country's largest multiplex chain, even if a film does not perform well.
Bijli mentioned that the chain is closing 80-90 underperforming screens and plans to establish 10 food courts this financial year in collaboration with its joint venture partner, Devyani International, which operates KFC and Pizza Hut, to maximize pre-ticketing food and beverage sales.
Brokerage firm Geojit Financial Services maintains a positive outlook on PVR Inox despite its weak Q1 performance, with a target price of ₹1,709. The brokerage attributes the multiplex chain's underwhelming results to the delay of several film releases to Q2 and Q3, which are expected to drive revenue growth.
"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 brokerage firm said.
PVR Inox is currently focusing on a strategy of re-releasing critically acclaimed films, which has proven highly successful for the company. A recent success story is the re-release of Sajid Ali's Laila Majnu, which exceeded its original lifetime box office collections. Earlier, films like Imtiaz Ali's Jab We Met and Rockstar were also re-released with similar success.
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