PVR INOX shares extend rally for 3rd day, analysts see up to 11% rise amid Animal box office success – News18

After a prolonged lull in the wake of the COVID-19 pandemic, the box office is experiencing a remarkable revival this year, thanks to a string of blockbuster releases. The resurgence began with the much-anticipated Pathan, followed by Jawan, Gadar 2 and the recently released Ranbir Kapoor starrer Animal. This successful box office run of the movie is injecting new life into dormant theatre companies, reflected in the recent rally in national multiplex chain operators like PVR INOX Ltd.

Shares of PVR INOX Ltd closed 0.1% higher at Rs 1,744.85 apiece on NSE on Friday extending the rally for the third straight day. PVR INOX Ltd has seen a surge in its stock prices, signalling renewed investor confidence in the industry amid the box office success of films like Animal.

Earlier, the PVR INOX stock closed at Rs 1,749.90 apiece on the NSE on Monday, December 4, registering an increase of 0.54%. Since Animal’s release on December 1, the shares of PVR INOX have gained 1.56%

However, a major jump was recorded on November 30, a day before Animal was released. The PVR INOX share price gained 1.13% and closed at Rs 1,717.60 apiece. In addition, on December 1, Animal release was expected to have pushed the share prices to Rs 1,740.50 apiece, gaining 1.33% from its previous close. Six months ago, PVR INOX shares were trading at around Rs 1,429.55 apiece, which suggests that the stock has witnessed a substantial increase of 22.03 per cent.

The recent success of Bollywood movies at the box office has bolstered investors’ trust in multiplex chain operators. Last week saw the release of two highly anticipated films- Animal, starring Ranbir Kapoor, which has garnered immense popularity and robust collections, and Sam Bahadur, featuring Vicky Kaushal, which is also receiving a positive response. The strong performance of these films has heightened expectations for increased earnings for theatre chains, thereby boosting the shares of PVR INOX.

Analysts foresee substantial growth potential in these shares. Brokerage Nuvama has set a target price of Rs 2,210 per share on PVR INOX, citing the upcoming releases of blockbuster films such as Dunki, Salar, and Hollywood’s Aquaman early next year. The optimism around these developments has translated into confidence among market experts, with various brokerage firms offering optimistic targets.

Furthermore, Trendline, a market monitoring website, predicts a rise in PVR’s stock, setting a target of Rs 1,940, an 11% increase from the current price. In addition, top brokerage firms like Sharekhan, ICICI Securities, and Prabhudas Lilladher have also set ambitious targets at Rs 2200, Rs 2,240 and Rs 1,984 per share, respectively.