With several films performing well at the box office recently and a number of movies scheduled to hit theatres this Friday and throughout December, third quarter looks promising for the Indian multiplex chain PVR Ltd.
In a recent interview with ET Markets, Kamal Gianchandani, CEO, PVR Pictures, said that the October-December quarter has seen resurgence in box office, and many movies performed well at that box office, and surpassed expectations.
He added, “looking at the lineup for the rest of November, we have got ‘Bhediya’ coming up next week and of course ‘Action Hero’ followed by ‘Avatar 2’ and that is going to be a global hit."
Brokerage house Nuvama Wealth Management Ltd, formerly known as Edelweiss Securities Ltd, is bullish on the multiplex company’s Q3FY23 performance as it expects a potential revival in footfalls due to a robust pipeline with movies ‘Bhediya’, ‘Cirkus’, and ‘Avatar: The Way of Water on its way’.
“After a muted Q2FY23, Q3FY23 is turning out to be well with movies lined up across genres. ‘Uunchai’ has given the push to family-oriented movies, and we expect this phenomenon to continue,” said the brokerage in its report.
ICICI Direct Research too is hopeful of a good performance by PVR in the October-December quarter and said that going ahead, the performances of big films such as Avatar, along with Hindi line-up, will hold the key for an overall recovery.
Nuvama Wealth continues to track the PVR and Inox merger (expected by January), which shall yield synergies, according to the brokerage. It continues to be positive on multiplexes on a long-term basis and has retained ‘buy’ rating on PVR and Inox.
On the technical front, analysts believe PVR will be in a consolidation phase, and expect rangebound move to continue.
“PVR is range bound stock with 1700 – 1850 as the range, traders should play the range, buying around the dip and selling around the resistance, as long the range is not broken momentum would be missing,” said an analyst.
The Indian multiplex chain's stock has gained 42.88 percent from its 52-week low of ₹1,224.0, and the weekly average delivery volume is 39.66 percent.
According to a MintGenie poll, 26 analysts have a ‘strong buy’ call on the stock.
Shares of the company were trading flat at ₹1,750.55 per share at the time of writing.
