How Adipurush’s Box Office Performance Affected PVR-Inox Shares
Adipurush, the epic drama based on Ramayana, starring Prabhas and Kriti Sanon, was one of the most anticipated movies of the year. The film, directed by Om Raut, released on June 16, 2023, amid high expectations and hype. However, the movie received mixed reviews from critics and audiences alike, and failed to impress the filmgoers. This had a negative impact on the shares of PVR-Inox, the leading multiplex operators in India.
PVR-Inox Shares Slip 3.5% On Disappointing Reviews Of ‘Adipurush’
PVR-Inox shares declined over 3 percent on June 16, 2023, after the movie release in theatres. The stock fell 3.31 per cent to close at Rs 1,450.45. The market analysts were expecting a good response to the movie, which could have added to June quarter results. However, even premium pricing of tickets and about six lakh advance tickets sold have failed to cheer the PVR INOX stock.
The movie critic Taran Adarsh gave a rating of 1.5 stars out of five to Adipurush and called it an epic disappointment. He tweeted: “#OneWordReview … #Adipurush: DISAPPOINTING. Rating: ⭐️½ #Adipurush is an EPIC DISAPPOINTMENT… Just doesn’t meet the mammoth expectations… Director #OmRaut had a dream cast and a massive budget on hand, but creates a HUGE MESS. #AdipurushReview”
PVR-Inox Shares Gain 4% On Strong Advance Booking Of ‘Adipurush’
Before the release of Adipurush, PVR-Inox shares were up quite a bit this week in anticipation of bumper numbers from the movie. Based on Nuvama’s channel checks and industry data, footfalls were likely be stronger than expectations – PVR INOX to lead the major chunk. Prabhudas Lilladher noted that advance booking trends were encouraging for the movie.
The brokerage said that for its first weekend, PVR INOX had already sold 5.5 lakh tickets and expected this number to re-rate further. It also said that a significant chunk of revenue would originate from southern India, mainly as Telangana government granted ticket price hikes for the film.
The brokerage also said that if Adipurush was able to net upwards of Rs 500 crore, it believed PVR-Inox would report a better performance than 4QFY23 (managed pre-IND AS Ebitda breakeven). So far, four movies have crossed the net box office collection (NBOC) barrier of Rs 100 crore in June quarter.
Conclusion
Adipurush was expected to be a blockbuster movie that would boost the revenues and profits of PVR-Inox in the June quarter. However, the movie received disappointing reviews and failed to live up to the hype. This resulted in a sharp fall in PVR-Inox shares on the day of its release. The movie also lost more in market cap than the budget of the movie. This shows how the box office performance of a movie can affect the stock prices of multiplex operators like PVR-Inox.