PVR, Inox gain ₹650 crore market cap after Brahmastra’s ₹100 crore opening weekend

• PVR and Inox, India’s largest movie chains, gained on Monday after slumping on Friday.
• Brahmastra collected ₹100 crore during the opening weekend and the markets responded positively.
• Brahmastra has reportedly been made with an estimated budget of ₹410 crore.

Shares of India’s largest theatre chains PVR and Inox surged by nearly 4% each, adding ₹650 crore to investor wealth and recuperating most of their losses from the Friday slump.

The Ranbir Kapoor-Alia Bhatt starrer Brahmastra has been a much anticipated movie, not just for the fans of the stars, but also for the industry as a whole. Bollywood has been going through tough times, with multiple movies failing to attract crowds – the most prominent name being Aamir Khan’s Laal Singh Chaddha, a remake of the iconic Forrest Gump.

$PVR.NSE - Chart looks weak Current price - 1905 Near resistance - 1950 Near support - 1880 Currently in a no-trade zone. Buy above 1950, with SL 1880 Sell below 1770, with SL 1820 $INOXLEISUR.NSE - Chart looks weak Current price - 515 Near resistance - 527 Near support - 490 Currently in a no-trade zone. Buy above 530, with SL 510 Sell below 490, with SL 510 Disclaimer - Views are shared for educational purposes only.

— (@MishikaChamria) September 12, 2022

Brahmastra opened to tepid reviews from many film critics, and the market reacted with shares of theatre chains PVR and Inox slumping by over 5% on Friday, wiping out over ₹800 crore in market capitalization.

According to Elara Capital’s senior vice president Karan Taurani, Brahmastra’s opening weekend collections stand in the ₹100 crore range, and that has helped the shares of PVR and Inox recover most of their losses from Friday.

“The numbers are a positive surprise, despite mixed reviews of the film. The reason for this is two-fold – audiences have really enjoyed the VFX in this film (one of its kind) and higher ticket prices (approx. 30% higher than average due to 3D and Imax format sales),” Taurani told Business Insider India.

That being said, Taurani is sticking to his guns. “As per recent collection numbers and advances for the weekend, the film may now breach towards the upper end of our estimates – ₹180-200 crore in its lifetime,” he added.

According to trade analyst Taran Adarsh, Brahmastra managed to increase its net box office collections since its Friday opening. But going by his numbers, growth on Sunday has slowed down. Overall, his estimates put the net collection at ₹108 crore for the weekend.

It remains to be seen how Brahmastra performs from here on out, since Monday numbers after the opening weekend are important in determining the overall trajectory of any movie.

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