PVR surges over 40% post Cinemax deal

PVR has surged 11% to Rs 334, extending its previous two-day’s rally after the company announced buyout of Cinemax India’s promoters’ entire 69.27% stake for Rs 395 crore.

Analysts are positive on cinema exhibition major PVR’s decision of buying out Cinemax India. Post this deal, PVR will be the largest multiplex operator in India with 351 screens, well ahead of peers.

“We need to monitor how PVR manages the two brands—PVR and Cinemax—and possible concentration of screens in some geographies. We will revise our numbers once we have more details, but remain positive as we expect PVR’s bargaining clout to increase and operating synergies to kick in,” Edelweiss said in recent report.

The stock is currently trading at its four-year high and has rallied 41% in past three trading sessions on the BSE compared to 2.3% rise in benchmark Sensex.

The counter has seen heavy trading activity with a combined 4.22 million shares changing hands till early noon deals against an average around one million shares that were traded daily in past two weeks.