Friday Fever: Pushpa 2 release set to push PVR Inox stock to Rs 2,000 mark?

Shares of PVR Inox Ltd rose over a per cent today as global brokerage UBS maintained its buy call on the movie exhibitor. UBS raised its price target on the PVR stock to Rs 2,000 per share against the earlier Rs 1,950 mark. The global brokerage said with three days left until release of Allu Arjun starrer Pushpa 2: The Rule, advance bookings reached Rs 100 crore in less than 48 hours. The brokerage expects bookings to pass Rs 150 crore before release of the movie. Pushpa 2 movie will release on December 5 which looks set to bring bumper revenue for movie exhibitors, including PVR Inox. 

UBS said PVR will surprise positively in both Q3 FY25E and Q4 FY25E. In the afternoon session today, PVR Inox's stock rose 1.5% to Rs 1,598 against the previous close of Rs 1574.35. Market cap of the firm stood at Rs 15,664 crore. Total 0.18 lakh shares of the firm changed hands amounting to a turnover of Rs 2.81 crore.

The stock hit a 52-week high of Rs 1,829 on December 18, 2023 and fell to a 52 week low of Rs 1203.70 on June 4, 2024. 

The stock had a beta of 0.9 in the last one year, indicating average volatility during the period.  

In terms of technicals, the relative strength index (RSI) of Solar Industries India stands at 60.3, signaling the stock is trading neither in the overbought nor in the oversold zone. PVR Inox shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day, 150 day and 200 day moving averages.

YES Securities has initiated coverage on the stock with a buy call. It has a price target of Rs 1,980 on the stock. 

"PVR Inox has displayed a noteworthy resilience and adaptability to the changing landscape of the movie exhibition industry in recent times. We believe the worst is behind for the movie exhibition industry and PVR INOX is likely to be the key beneficiary, given its market leadership and pan-India presence," said YES Securities.

"Threat of OTTs has diminished with consumers preferring theatrical experience for good content. We initiate coverage on the stock with a BUY rating owing to expected industry-wide revival in occupancy rates; various initiatives for reviving footfalls; cost rationalization to act as margin lever; and improvement in ROCE," added YES Securities.