PVR more likely to see robust footfalls with ‘Pathaan’ launch however This fall general might stay muted: Nuvama Wealth

After a blockbuster Q3FY23 (October-December) for PVR Ltd, seasonally weak Q4FY23 (January-March) is more likely to see robust begin from film ‘Pathaan’, believes Nuvama Wealth Management Ltd.

Post pandemic, the Hindi film ‘Pathaan’ is already seen within the prime three for advance bookings, as per the brokerage report.

There is a pent-up demand for the film, which is being launched on Wednesday, January 25, because it options the well-known Bollywood star Shah Rukh Khan after 4 years. The film will begin screening from 6 am in lots of screens throughout common and premium codecs.

Nuvama Wealth Management believes that the film would run for a prolonged 5 days all through the primary week.

“Strong numbers for ‘Pathaan’ is a welcome sign for the Bollywood industry. We expect robust earnings for ‘Pathaan’ ( ₹350-400 million on first day, ₹1.5-2.0 billion India collections in first week). This again proves people would want to watch a big entertainer on the big screen,” mentioned the brokerage in its report.

Additionally, the truth that multinational OTTs decreased their spending by 30 p.c this yr is constructive for PVR by way of aggressive depth.

The brokerage claims that if there is not a big social media uproar or political backlash, destructive publicity may additionally enhance footfall. Strong consideration was generated by the controversies across the music ‘Besharam Rang’ and the differentiated promotions.

However, going forward provided that it’s examination season in February and March, footfall for the stability a part of Q4FY23, which incorporates ‘Selfiee’, ‘Shehzada’, and ‘Maidaan’, could also be a bit tough.

Last week, the movie exhibition firm, reported a consolidated internet revenue of ₹16.15 crore for the third quarter ended December. When in comparison with the identical interval final yr, its consolidated working income for October-December elevated 53.17 p.c, from ₹614.15 crore to ₹940.69 crore.

“The quarter witnessed a sharp bounce back from the previous quarter on the back of strong content performance. The same was reflected in the growth of key operating metrics like Admits, ATP (average Ticket Price) and SPH (Spending per head),” mentioned the corporate in an change submitting.

With solely few formalities left for the merger with Inox, enhancing dynamics for Hindi motion pictures and sure robust pipeline for Hollywood in calendar yr (CY) 2023, the brokerage continues to stay constructive on multiplexes on a long-term foundation.

“PVR stock is in oversold territory (down 30% plus from peak), and we retain ‘buy’ rating,” mentioned the brokerage.

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