Eros International Media shares have been under tremendous selling pressure for the last few weeks. The stock has shed 40 per cent value in the last one month, underperforming the broader Sensex, which has shed just 4 per cent. (Read)
Traders are now eyeing Sanjay Leela Bhansali's upcoming period drama Bajirao Mastani to boost the fortunes of the stock. Eros International Media is the global distributor of Bajirao Mastani. A strong show by the Deepika Padukone-starrer may provide support to Eros shares, traders say.
However, there's a catch. Bajirao Mastani is releasing the same day when Rohit Shetty's action comedy Dilwale (starring Shah Rukh Khan) will hit the box office. Both movies are releasing on December 18.
For now, analysts are downplaying the possible impact of the clash on Eros International.
"We expect Bajirao Mastani to do well due to a 3 week window on account of year end and Christmas holidays. The market speculation for Bajirao Mastani gross box-office is between Rs 200 crore to Rs 300 crore on a worldwide basis," said brokerage Maybank.
Meanwhile, Eros is working proactively to ensure that Bajirao Mastani is a big hit. The company on Thursday said that it will dub the movie in Tamil and Telugu so that Bajirao Mastani gets a wider release.
"This is very positive for the overall box-office prospects of the movie... Dubbing of the movie in regional languages and a possible release in China will help Bajirao Mastani surpass market expectations," said Maybank.
Eros International continues to strengthen its film pipeline for the next two years and has announced remake of popular Hollywood movie Chef in Hindi starring Saif Ali Khan, the brokerage added.
Eros International shares have shed 40 per cent in the last one month, underperforming the broader Sensex, which has shed just 4 per cent. On Friday, the stock closed 4.96 per cent lower at Rs 218.30 as against a 0.75 per cent gain in the broader market.
Maybank has a "buy" on Eros International with a target price of Rs 400.
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