PVR Inox Awaits Salman Khan's Sikandar After Chhava Brings Respite From Two-Year Struggle

After Vicky Kaushal, PVR Inox is praying for Salman Khan's success as Eid 2025 will see the Sikandar hit cinemas on March 28. The last few quarters have been a struggle for the Hindi movie business but the recent box office success of Chhaava in February has brought much needed respite and trade analysts are hopeful that Khan will carry the momentum.

A note by research firm Nuvama also expects that the ongoing fourth quarter will see the tide turn for tinseltown and has thus sees an almost 100% upside potential for PVR Inox from the previous closing level.

"Sikandar, set for a release in the end of Q4FY25, is anticipated to deliver strong opening numbers. The pipeline (also) includes Hollywood movies such as Thunderbolts and First Steps," the note said.

The much-awaited uptick also means PVR Inox is on track to reach pre-Covid operating margins of 18% as footfalls increase.

The year 2025 has started on on a strong note for PVR with a 39% year-over-year surge in box office collections to Rs 2,264 crore in January and February, driven by the success of Chhaava.

The Hindi film industry, which had been struggling, has shown signs of revival, although consistency will be key to sustaining this momentum. Chhaava's significant contribution to February's collections (53%) underscores the audience's willingness to watch compelling content in cinemas, the brokerage said.

"Chhaava’s success is even more impressive considering it has come through during the lower-performing exam season, further highlighting the pull of strong content in attracting moviegoers," Nuvama said.

The target price upgrades have meant that the PVR Inox stock has rallied on Tuesday but is still down over 40% in the last six months.

In the December quarter, PVR Inox reported Rs 35 crore in profit and Rs 1,759 in revenue. The occupancy ratio improved to 25.7% from 25.2% in the same period last fiscal.

PVR Inox share price advanced over 5% intraday to Rs 949.35 apiece. The scrip was trading 4.5% higher by noon. The benchmark NSE Nifty 50 was up 1.16%.

The stock has fallen 31% in the last 12 months and 28% on a year-to-date basis. The total traded volume so far in the day stood at 2.1 times its 30-day average. The relative strength index was at 39.

The strong sentiment is reflected in the bullish call that the brokerage has waged. Nuvama has maintained its 'buy' rating on PVR Inox stock with a target price of Rs 1,765, implying an upside potential of 96% over the last closing.

Compare that to the average of 12-month analyst price target of Rs 1,479 which sees a 60% upside, according to Bloomberg data. Sixteen out of the 22 analysts tracking PVR Inox have a 'buy' rating on the stock, three each recommend a 'hold' and 'sell'.