Race 3 box office collection: PVR, Inox Leisure share prices tank even as Salman Khan starrer joins 100 crore club
PVR, Inox Leisure and Eros International slipped up to 4 per cent on the BSE. PVR share price dipped nearly 4 per cent to Rs 1352.15, Inox Leisure slipped 2.45 per cent to Rs 258.20, while Eros International dropped 2 per cent to Rs 129.85 on the BSE.
Race 3 box office collection: Salman Khan starrer Race 3 failed to meet viewers' expectations with a slew of negative reviews coming in over the weekend. While the movie did cross the Rs 100-crore mark within three days of its release, and also became the highest opener of the year, even big time Salman Khan fans disliked the storyline.
Reacting to negative reviews, multiplex stocks such as PVR, Inox Leisure and Eros International slipped up to 4 per cent on the BSE. PVR share price dipped nearly 4 per cent to Rs 1352.15, Inox Leisure slipped 2.45 per cent to Rs 258.20, while Eros International dropped 2 per cent to Rs 129.85 on the BSE.
The magic of Salman Khan did draw crowd on the first day and opening weekend, the footfalls are expected to recede Monday onwards.
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The movie grossed Rs 29.17 crore on the first day i.e. Friday last week. Second day remained positive too with it earning Rs 38.17 crore on Saturday. Despite negative reviews, Salman Khan factor combined with Eid holiday helped the movie earn Rs 39.16 crore on its third day, bringing its total collection to 106. 47 crore.
Meanwhile, brokerage IIFL has a positive outlook for multiplexes. The brokerage initiated coverage on PVR (BUY, TP of Rs 1,700) and Inox Wind (BUY, TP of Rs 367).
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"We believe that India’s multiplex sector is all set to leverage the momentum in non-ticketing revenue and drive growth in earnings and improvement in RoE. India’s demographics and low penetration of screens provide a huge growth opportunity for multiplex players. The top-3 players – PVRL, INOL and Carnival cinemas (combined market share of 57 per cent) are targeting to cross 1,000 screens each versus industry size of 2,750 multiplex screens as of end-2017," said IIFL in a research report dated May 31, 2018.
"PVR and Inox Wind have demonstrated strong capability to drive growth in non-ticketing revenue despite poor content in FY17/18. With an improved outlook for movies for FY19, we forecast the momentum in non-ticketing revenue to sustain. We forecast this to drive improvement in RoE – PVR to 15.9 per cent in FY20E from 12.4 per cent in FY18 and Inox Wind to 15.6 per cent in FY20E from 11.4 per cent in FY18," the report added.