Allu Arjun-starrer 'Pushpa 2: The Rule' had a blockbuster day one as the action-packed sequel to Sukumar's 'Pushpa: The Rise' grossed an impressive Rs 175 crore worldwide. However, this record-breaking performance failed to lift the mood for PVR Inox Ltd stock. However, brokerage firms, overall, continue to remain positive on the counter but some suggest investors to be cautious.
The Rashmika Mandhana-starrer part-two of the franchise also had a strong kick-off in the Hindi-heartland, thanks to the immense craze. Market pundits are predicting the action-packed movie to shatter multiple records in terms of collection. However, Dalal Street appeared to be not-much impressed by the performance.
Shares of PVR Inox Ltd cracked 3.22 per cent to Rs 1,527 on Friday, with its total market capitalization falling below Rs 15,200 crore mark. However, the stock managed to script a partial rebound. However, the counter had settled at Rs 1577.90 in the previous trading session. Shares of PVR Inox have dropped nearly 17 per cent from its 52-week high at Rs 1,829.
Analysts, tracking the counter, are mostly positive on the stock. They see the southern-sensation to be another success at the box-office with a solid collection, at both gross and net levels. On the other hand, other experts say that investors should wait for the first week's collection as the euphoria settles.
On opening day itself, Pushpa 2 has already earned Rs 175 crore, which was in-line with street expectations with Hindi language collections grossing Rs 67 crore. This is a good-enough indication that the movie is heading for a strong first weekend with domestic net box office collection (NBOC) expectations of Rs 300-400 crore, said Shobit Singhal, Research Analyst, Anand Rathi Institutional Equities.
"Overall, we expect the film to earn Rs 900-1000 crore. However, it is still too soon to tell, and the first weekend's performance would be the deciding factor of how the film's subsequent earnings trajectory will pan out. So, currently, it looks like a "wait and watch" type of scenario for the market," he said.
Much awaited Pushpa 2 has created a strong buzz on the box office with staggering advance booking collections of more than Rs 100 crore globally. More than 1 million tickets have been booked in advance, said YES Securities in a note.
"Further, states of Telangana and Andhra Pradesh have relaxed pricing caps for 2-3 weeks post release, which is a move in positive direction for the industry. This bolsters our bullish view on PVR INOX. We remain optimistic on revival in occupancy rates and premiumization play in movie exhibition business," it added and maintained a 'buy' rating with a target price of Rs 1,980.
Karan Taurani from Elara Capital believes that Pushpa 2 set for lifetime gross box office collection (GBOC) of Rs 1,000 crore worldwide, while Hindi GBOC to be at Rs 500 crore. "Initial feedback hints Pushpa 2 is likely to set record-breaking collection as its popularity can be sensed through fan frenzy in core Hindi heartland and advance bookings," he said in his latest note.
"PVR-INOX is set to perform well with a healthy content pipeline and potential all-time grossing movie Pushpa 2. Improved occupancy may aid in growing average ticket price while ad revenue could see respite, given the release schedule of popular content. Further, CY25 builds hope with a slate of Hollywood movies and Hindi sequels with megastar movies," he said with a 'buy' target and target price of Rs 1,950.