After Sultan and Dangal, Baahubali adds muscle to cinema stocks

Why did Kattappa kill Baahubali?

The country’s search for the answer to this million-dollar question has sent stocks of leading multiplexes on a bull run, raking in crores in a dream sequence that started last year.

Baahubali 2: The Conclusion – a historical fantasy filled with stuninng visuals and VFX -- has grossed over Rs 1,100 crore within two weeks of its release and become the highest grossing Indian film worldwide in history.

Baahubaali’s collections are three times that of Dangal and Sultan, according to data collated by BollyMovieReviewz website.

The string of blockbusters is bolstering revenues of multiplex owners, not just through ticket collection but also from sale of food and beverages.

Adding advertisement and other revenues, multiplex companies are expected to see a significant jump in their earnings and that is driving up stock prices.

The country’s leading PVR Cinema has seen its stock price almost double to Rs 1,550-1,600 in a year, while close rival INOX Leissure’s shares are up 50% at Rs 280-300, latest data show.

The success in the stock markets for multiplex chains started last year with the Salman Khan-starrer ‘Sultan’ and then Aamir Khan’s ‘Dangal’.

Much of investor sentiment is guided by the extent of revenue collections from movies, a significant amount of which comes from ticket sales.

The south Indian movie, which is laden with special effects, has surpassed 2014 Bollywood blockbuster ‘PK’, which made around $120 million.

Since last year, cinema industry has been churning out a wave of content-rich as well as entertaining movies.

Some of media stocks also started rising with Akshay Kumar’s ‘Airlift”, comedy sequel ‘Housefull 3’, Rajnikaanth’s ‘Kabaali’, Rustom, Dhoni and Ae Dil Hain Mushkil, all of them grossing over Rs 100 crore each.

This year, the Hrithik Roshan-starrer Kaabil, Shahrukh Khan’s Raees, Akshay Kumar’s Jolly LLB 2 and Badri ki Dulhania also raked in close to Rs 100 crore or more each.