PVR, Inox rallied 18 percent and hit 52-week high as theatres to reopen
Published On: Monday, September 27, 2021 | By: Team KnowMyStock
Shares of multiplex owners Inox Leisure and PVR climbed up to 18 percent and hit their respective 52-week highs on the BSE in intra-day trade on Monday after the Maharashtra government announced the reopening of cinema halls and drama theatres in the state from October 22, ahead of Diwali. Stock market participants are further bullish on the multiplex stocks on the back of the reopening theme. However, they will start operations at 50 percent strength. So, it is still two to three quarters more when these theaters will start their operations at 100 percent strength. Maharashtra is one of the largest markets for cinema theatres with a contribution of around 25 percent of the Hindi box office revenue. Theatres and movie halls across India have been closed since April this year. Chief Minister Uddhav Thackeray in a tweet said the standard operating procedure (SOP) for the reopening was in the works and would be announced at the earliest.
The Multiplex Association of India (MAI), along with leading cinema chains PVR and INOX, had requested the Maharashtra government to reopen theatres on an "urgent basis", claiming the industry had suffered losses up to Rs 4,800 crore due to the prolonged closure.
one can buy these stocks keeping long-term time horizon in mind.
Tags: PVR Inox multiplex theater Niftymedia
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