Live Events
Will Dhurandhar’s success boost PVR Inox shares
as a Reliable and Trusted News Source Addas a Reliable and Trusted News Source Add Now!
(You can now subscribe to our
(You can now subscribe to our ETMarkets WhatsApp channel
The much-awaited Ranveer Singh-starrer Dhurandhar: The Revenge arrived in theaters last week, smashing box office records with massive footfalls and record collections. Analysts expect the film's success to benefit PVR Inox 's earnings in the near-term, despite the recent correction in share price.Director Aditya Dhar ’s espionage thriller has officially crossed the Rs 800-crore mark in worldwide gross collections, and is expected to continue recording strong numbers as movie buffs flock to theatres to see how Hamza Ali Mazari gradually asserts his control to become the King of Lyari, while Jaskirat Singh Rangi's backstory is revealed.For PVR Inox — India's largest exhibitor with 1,774 screens — the timing for the release of Dhurandhar: The Revenge could not have been more consequential, said Harshal Dasani, Business Head at INVasset PMS. "Q4 FY26 industry-wide box office stood at a tepid Rs 1,500 crore before the sequel's release, well below the Rs 2,190 crore clocked in Q4 FY25, making the Dhurandhar franchise the quarter's only credible revenue anchor," he added. Dhurandhar : The Revenge has the potential to salvage the quarter for PVR-INOX, which otherwise appears to be a bit lukewarm, said PL Capital. Barring Border 2, none of the Bollywood movies like O’Romeo, Mardani 3 or The Kerala Story 2 have been able to strike a chord with the audience, it noted.In its bull case, PL Capital sees Dhurandhar: The Revenge recording a net box office collection surpassing Rs 1,000 crore. In its base case, the wealth management company sees the film collecting Rs 840 crore to Rs 1,000 crore."If Dhurandhar: The Revenge collects around Rs 1,000 crore and 75% of the collections accrue in the first 14-15 days, industry-wide box office collections for the quarter will be similar to Q4 FY25, the firm said. “Thus, Hamza’s revenge is likely to benefit PVR-INOX in Q4 FY26E," it added.Robust box office collections from Dhurandar can lead to relatively better earnings growth for PVR Inox in the January-March quarter and can have a positive rub off effect on the stock in the short term, said Sunny Agrawal, Head of Fundamental Research at SBI Securities.Dasani highlighted that the stock continues to tell a "sobering story" despite the optimism around the release, as it is being weighed down by stretched valuations at a trailing P/E above 400x, sluggish overall occupancy at 27% versus pre-COVID norms of 32%, and a broader market selloff amid the US-Iran conflict.Agrawal from SBI Securities meanwhile noted that consistency in strong box office collection every year is the key for PVR's earnings growth and re rating. "We continue to maintain a Neutral stance on the stock," he added.PL Capital has a 'Buy' rating on the shares of PVR Inox with a target price of Rs 1,274 apiece, implying an upside potential of nearly 35% from the previous closing price. The stock has fallen around 8% in the past five days, and more than 15% in the past six months.: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)