Lights, Camera, Profits: Impact of Blockbusters on Indian Media Stocks

The Indian media stocks are buzzing with excitement and positivity as recent hit movies like Gadar 2 and Jailer have taken the industry by storm. These movies have not only entertained the audience but have also brought a much-needed boost to the post-pandemic scenario. So, let’s dive into the world of silver screens and explore the success story of these blockbuster movies and their impact on the Indian media stocks.

Movies’ Achievements

The July-September quarter had a strong start with movies like Mission Impossible – 7 and Oppenheimer doing well at box office. Subsequently, Gadar-2 and Jailor stormed the Box office with collections of ₹410 crore and ₹290 crore, respectively. 

PVR Inox, one of the leading players in the multiplex game, had a historical day on August 13, with a record sale of 12.80 lakh tickets, amounting to a whopping ₹39.50 crore collection

So far, six movies have already breached the net box office collection (NBOC) mark of ₹100 crore in Q2FY24. In fact, given sharp turn-around in Bollywood, industry wide net box office collection (NBOCs) stood at around ₹1,830 crore in the first two  months of Q2FY24.

This is as compared to the industry wide NBOC of around ₹1,870 crore and ₹1,860 crore in Q2FY23 and Q1FY24, respectively.

The success of Gadar 2 and Jailer  has left everyone eagerly waiting for the upcoming Hindi releases, Dream Girl 2 and Jawan. Ayushman Khurana and Ananya Pandey starrer Dream Girl 2 is all set to hit the theaters on August 25, promising to bring laughter and entertainment back to the big screen. And let’s not forget the much-anticipated Shah Rukh Khan’s Jawan, which is scheduled for release on September 7. The excitement is soaring high, and the audience is holding their breath in anticipation. Will these movies continue the success story? Only time will tell.

Revival of the Multiplex Industry

The pandemic had hit the multiplex industry hard, leaving it in shambles. But thanks to movies like Pathaan, Rocky Rani ki Prem Kahani, Oppenheimer, the industry has experienced a revival, despite the popularity of OTTs.  People are once again stepping out of their homes and into the world of cinema. The magic of the silver screen seems to be irresistible, drawing the crowd back to the theatres. Looks like the multiplex industry is back in business, making dreams come true, one movie at a time. 

PVR Inox, one of the leading players in the multiplex game, had a historical day on August 13, with a record sale of 12.80 lakh tickets, amounting to a whopping ₹39.50 crore collection. Between August 11-13, the company sold a total of 33.6 lakh tickets, raking in more than ₹100 crore at the box office. With such mind-boggling numbers, PVR Inox is surely having a good time counting their profits and grinning from ear to ear. 

Stock Performance Post Blockbusters

When movies do well, so do the companies involved in them. Here are the stocks which saw a high after a great quarter in hindi cinema- 

PVR Inox 

PVR Inox, one of the leading players in the multiplex game, had a historical day on August 13, with a record sale of 12.80 lakh tickets, amounting to a whopping ₹39.50 crore collection.The rise in PVR Inox shares in Q2FY24 can be attributed to a number of factors, including:

• The strong performance of the Indian box office in recent months. Several big-budget films, such as “Gadar 2”, “Jailer”, and “Pathaan”, have been successful at the box office, boosting investor confidence in the multiplex industry.
• The merger of PVR and INOX, which created a multiplex behemoth with over 1,650 screens across 350 properties in more than 110 cities. This merger is expected to create synergies and improve the operational efficiency of the combined entity, which could lead to better financial performance.
• The growing popularity of multiplexes among Indian consumers. Multiplexes offer a more comfortable and luxurious viewing experience than single-screen cinemas, and they are increasingly being seen as a preferred option for watching movies.

Sun TV Network 

The stock price of Sun TV Network has been on an upward trend in recent weeks, and there are a few reasons for this.

• First, the company’s film production business has been doing well. The Tamil film “Jailer”, which was produced by Sun Pictures, has been a box office hit, grossing over ₹500 crore worldwide. This has boosted investor confidence in the company’s film business.
• Second, the company’s television business is also doing well. Sun TV Network is the leading television broadcaster in Tamil Nadu, and its channels continue to enjoy a strong viewership. The company is also expanding its presence in other regional markets, such as Kerala and Karnataka.
• Third, the company is investing heavily in new content and technologies. Sun TV Network is launching a new OTT platform called Sun NXT, and it is also investing in new production facilities. These investments are expected to drive future growth for the company.How Hit Movies like Gadar 2 and Jailer 2 Have Boosted Indian Media Stocks

Overall, The company is well-positioned to continue growing in the coming years, and its stock price is likely to remain on an upward trend.

Zee Entertainment Pvt Ltd 

Yes, Zee Entertainment Enterprises (ZEE) has had a good financial year 2023. The company’s stock price has risen by over 50% since June, and it is currently trading at its highest level in over two years. This is due to a number of factors, including the company’s strong performance in the digital space.

• ZEE5, the company’s over-the-top (OTT) platform, has been growing rapidly. In the first quarter of FY2023, Zee5’s subscriber base grew by 25% to 116 million. The platform has also been producing some popular original content, such as the web series “Pitchers” and the movie “The Kashmir Files.”
• In addition to its strong digital performance, ZEE has also been benefiting from the recovery in the Indian television market. The company’s advertising revenue grew by 15% in the first quarter of FY2023.

Overall, ZEE is well-positioned for continued growth in the coming years. The company has a strong portfolio of assets, including its television channels, its OTT platform, and its film production business. ZEE is also investing heavily in new content and technologies, which should help it to maintain its leadership position in the Indian media and entertainment industry.

Way Forward

The success of hit movies like Gadar 2 and Jailer has taken the Indian media stocks to new heights. With record-breaking box office collections and a high number of moviegoers, these movies have single-handedly revived the multiplex industry post-pandemic. The impact on PVR Inox has been phenomenal, with record ticket sales and upcoming Hindi releases like Dream Girl 2 and Jawan creating a buzz among cinema enthusiasts. The media stocks market performance of PVR Inox has also seen a significant surge. This success story showcases the power of engaging storytelling, word-of-mouth publicity, and solid box office performances. It’s a clear indication that the post-pandemic era has brought a reversal in business, and consumer enthusiasm for the cinematic experience is stronger than ever. You can earn well through stock market investments if you just observe normal trends around you

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