Sector Update | Multiplex ICICI Direct Research
Multiplex December 30, 2019 Price Charts (Inox) Another superhit quarter for multiplexes! 13,000 450 12,000 400 Multiplexes remain the only segment that continues to deliver a strong 11,000 350 performance notwithstanding the economic slowdown. The strong content 10,000 300 9,000 performance, yet again, has resulted in ~35%+ growth in box office 250 collections (ex-regionals) so far in Q3FY20. Most importantly, this was 8,000 7,000 200 notwithstanding CAA protest in the key region of NCR. Moreover, the 6,000 150 Jan-17 Jul-17 Jan-18 Jul-18 Jan-19 Jul-19 Dec-19 H1CY20 content pipeline also looks strong with movies like Street Dancer 3D, Tanhaji: The Unsung Warrior, Chhapaak, Baaghi 3, BHOOT: Part One – Price (R.H.S) Nifty (L.H.S) The Haunted Ship, Shubh Mangal Zyada Saavdhaan, Sooryavanshi, ’83, Coolie No.1, Laxmmi Bomb, etc. due for release. We now incorporate the Update Sector strong box office performance in Q3 in our estimates. Deriving comfort from Price Charts (PVR) 13,000 2,000 strong growth trigger, we remain positive on our multiplexes universe and 1,800 11,000 maintain BUY recommendation with a target price of | 2200/share for PVR 1,600 and | 465/share for Inox Leisure. 9,000 1,400 1,200 7,000 Content delivers yet again in Q3FY20 1,000 5,000 800 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 We note that for Q3, so far, the box office collections (excluding regionals) have been a stupendous 35%+ YoY.
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