PVR-Inox - ‘Animal’ Spirit To Rescue A Cricket-Impacted Quarter: ICICI Securities

ICICI Securities Report

PVR Inox Ltd. suffered in the first half of Q3 FY24 due to the Cricket World Cup as big budget theatrical releases (Hindi) were moved to the second half. In addition, Hollywood content pipeline was weak (impacted by screenwriters strike).

‘Leo’ collected Rs 3.4 billion and ‘Tiger3’ collected Rs 2.8 billion (Nett. India). However, ‘Animal’ released on Dec 01, 2023 appears to be progressing towards becoming one of the top 10 blockbusters of all time.

In six days, it has collected ~Rs 3.2 billion (Nett. India), which is significantly higher than expectations. Over the same period, ‘Sam Bahadur’ collected ~Rs 0.4 billion (Nett. India) with strong word of mouth promotion.

Our channel checks indicate occupancy in PVR Inox in December 2023 has been in the range of 55-60%.

Given ‘Dunki’, ‘Salaar’ and ‘Aquaman’ are in the pipeline in Q3 FY24, we re-iterate 'Buy'.

Key risks:

Lower than-expected performance of upcoming movies and merger synergies not playing out as expected.

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