PVR INOX shares gained 1 percent to Rs 1,840.2 at 9.17 am on September 7, with Shah Rukh Khan-starrer Jawan releasing in theatres. The feature film may see a blockbuster opening of Rs 60 crore on the first day, said Elara Capital in a report dated September 6.
“Jawan may breach the upper end of its guidance if the content is good and finds relevance with the audience. This film is set to have a strong recall in southern markets too, as it is directed by Atlee,” said the brokerage firm.
Jawan is produced by Gauri Khan and Gaurav Verma under Red Chillies Entertainment.
Elara Capital has a buy call on PVR INOX with a target price of Rs 2,050. The brokerage firm said that the profitability of PVR INOX may be the highest in the July-to-September quarter on the back of better advertisement, revenue growth, sustained metrics, and healthy occupancy. In the same quarter, the Hindi Box Office is anticipated to reach its highest point since the onset of the COVID-19 pandemic, said Elara Capital. Multiplex occupancy is expected to approach the pre-Covid level of 32 percent for the merged company, driving a 31 percent growth in net Hindi Box Office compared to the pre-Covid period.
The brokerage firm is watchful of the performance of large-budget films in Q3FY24 like Tiger 3, Animal, Merry Christmas, and Dunki in order to sustain revenue and profitability momentum.