Shares of multiplex chains PVR and Inox Leisure gained on Thursday, a day before the release of the blockbuster film Baahubali: The Conclusion (Baahubali 2). PVR shares hit an intraday high of Rs 1,636 before closing at Rs 1,620, up 2 percent, while Inox Leisure ended 0.90 percent higher at Rs 298.50 after reaching a high of Rs 303 during the day, on the Bombay Stock Exchange.
Baahubali 2 Tamil Movie Review
PVR shares have gained 14.48 percent apiece in the past one month while Inox Leisure has moved up 15.50 percent from the March 27 closing prices of Rs 14,15 and Rs 258, respectively, for the two companies.
Baahubali: The Conclusion starring Prabhas, Tamannaah Bhatia, Ramya Krishna and Anushka Shetty, and directed by S S Rajamouli, is set for a worldwide release on Friday, though the premiere show scheduled for Thursday night has been cancelled by Karan Johar due to the demise of veteran Bollywood actor Vinod Khanna.
It is the first big film being released during the April-June quarter and multiplexes are hoping to cash in on the euphoria generated over the past few weeks by the film's makers and actors. The film will be released on over 5,000 screens in India alone.
The current quarter is considered good for cinema halls in view of summer holidays kicking in, after the March quarter that is traditionally weak due to school and college examinations.
March quarter business this year is expected to break the trend for multiplexes with topline growth likely to come above 25 percent along with better margins at the operating level, aided primarily by a slew of box office hits, steady shift towards watching films at multiplexes and huge entry barriers for new players, according to an update by brokerage Nirmal Bang Institutional Equities (NBIE).
The ticket sales for the two multiplex chains were boosted by box office successes that include Shah Rukh Khan-Mahira Khan's Raees, Hrithik Roshan-Yami Gautam's Kaabil and Badrinath ki Dulhania starring Varun Dhawan and Alia Bhat. Actors also show greater involvement these days in promoting their films, boosting box office collection.
PVR has 579 screens across 50 Indian cities while Inox Leisure, after including the latest acquisition in Pune effective from Wednesday (April 26), has 472 screens across 58 cities in India.
The four multiplex chains — PVR, Inox Leisure, Mexico's Cinepolis and SRS Cinemas — have a oligopoly-like hold, controlling 70 percent of the cinema screens in India, ensuring steady business for many years to come, wrote NBIE analyst Girish Pai in his note a few weeks ago.
On Thursday (April 27), the BSE Sensex ended 103 points lower at 30,029 while the NSE Nifty closed at 9,342, down 10 points.
