'Brahmastra' Powers PVR, Inox Leisure Stocks As Box-Office Collections Top Rs 100 Crore
The stocks had slumped as much as 5% at close on Friday on early reports that the movie received poor reviews.
Shares of PVR Ltd. and Inox Leisure Ltd. rebounded after slumping on Friday after Ranbir Kapoor- and Alia Bhatt-starrer 'Brahmastra' reported domestic box-office collections of Rs 105 crore over the weekend.
The stocks had slumped as much as 5% at close on Friday on early reports that the movie received poor reviews.
According to Abneesh Roy, executive director at Edelweiss Securities, footfalls over the weekend has been stronger than expectations despite negative and mixed reviews for 'Brahmastra'.
"The drought seen (in cinemas) in July and August gets wiped out due to strong footfalls of 'Brahmastra' in September. 'Brahmastra' has seen the highest opening in non-holiday Hindi film of Rs 105 crore domestic box office collection over weekend," Roy said.
According to producer Dharma Productions, the movie had worldwide gross collections of Rs 160 crore on Friday and Saturday.
An Instagram post by Dharma Productions. (Source: Instagram/@dharmamovies)
According to Roy, 'Brahmastra' did better than expectations on the back of strong marketing, differentiated content and a strong star cast. Apart from that, pent-up demand had a role to play as the past three months saw "weak content and lack of marketing campaigns".
PVR's CEO Kamal Gianchandani had also said the company's multiplexes saw bookings worth Rs 8.1 crore on the first day, the third-best collections by a movie among recent box office hits.
Shares of PVR gained as much as 5.1%, before closing 3.5% higher on Monday. It had lost 5.1% on Friday at close. Of the 31 analysts tracking the company, 27 maintain a 'buy', two suggest a 'hold' and two recommend a 'sell', Bloomberg data shows. The 12-month consensus target price implies an upside of 15.9%.
Inox Leisure, set to merge with PVR, also saw its stock gain as much as 5.5%, before closing 4.1% higher. It, too, had lost more than 5% on Friday. Of the 22 analysts tracking the company, 20 maintain a 'buy' and two suggest a 'hold'. The return potential is 28.5%.