Prabhas-starrer ‘Kalki 2898 AD’ Boosts PVR-Inox, Stock Jumps 6%

This year, PVR-Inox’s stock had fallen by over 9 percent, lagging behind the 10 percent rise in the Nifty 50 index.

On July 1, PVR-Inox saw a 6 percent increase in its share price, reaching Rs 1,512 each. This rise was driven by strong box office earnings and an exciting lineup of upcoming films.

The newly-released film ‘Kalki 2898 AD,’ starring Prabhas, has been a major hit, becoming the highest-grossing Indian film of 2024 within just three days. The movie earned Rs 415 crore worldwide, with over Rs 220 crore net in India, breaking the previous record held by Teja Sajja’s Telugu film ‘Hanu-Man,’ which had collected Rs 350 crore globally.

PVR-Inox is also generating excitement with a strong lineup of films, including ‘Deadpool & Wolverine’ in July and ‘Transformers One,’ set to release by September 20. The film industry had faced a downturn in April and May due to a weak content calendar, heatwaves, general elections, and the cricket season (IPL).

Despite the recent boost, PVR-Inox’s stock has declined more than 9 percent this year, underperforming the 10 percent rise in the Nifty 50 index.

Analysts at Nuvama expect the current lackluster performance to improve soon, driven by strong numbers for ‘Kalki 2898 AD’ and ‘Munjya.’

Emkay Global Financial has recommended buying PVR-Inox stock, setting a target price of Rs 1,650. They believe the content slate will improve in the coming months, with a strong Hollywood lineup, recovery in ad revenues, and a focus on reducing net debt.

Analysts also expect the management to aim for becoming net-debt free in the next few years. They anticipate PVR-Inox will adopt a ‘capital-light’ model, reducing annual capital expenditure by 20 percent through alternative models like FOCO (Franchisee-owned, Company-operated) and partnerships with developers.

Recently, PVR-Inox opened four new screens at Prism Mall in Hyderabad. With this addition, PVR-Inox now operates the largest multiplex network with 1,757 screens across 362 properties in 113 cities in India and Sri Lanka.

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