PVR, Inox Leisure rally up to 5% as cinemas reopen in Maharashtra

Shares of multiplex operators hogged the limelight on Thursday after Maharashtra government allowed reopening of cinema halls with 50 per cent seating capacity from November 5.

PVR traded 5.06 per cent higher at Rs 1,171.20 while Inox Leisure was up 2.50 per cent higher at Rs 270.95.

Keshav Lahoti, Associate Equity Analyst, Angel Broking said, “Maharashtra accounts for around 25 per cent revenue for the multiplex industry, so it is very important that theatres open in Maharashtra so that movies that are expected to get good occupancy plan their release.”

“We see development as a positive for the multiplex industry. We believe gradually things are improving for the industry. We don’t have big expectations of box office collections around Diwali. Although, we believe movies releasing around Christmas should report decent box office collections. We are bullish on PVR and Inox Leisure as long term fundamentals are still intact for the industry and stocks have corrected around 40 per cent due to Covid-19,” Lahoti added.

Earlier, PVR scaled its 52-week high of Rs 2,082.82 on February 20, while Inox Leisure hit the year’s high level of Rs 510.80 on February 25.

The order from the Maharashtra government on Tuesday read, “…the undersigned in his capacity as Chairperson, State Executive Committee, hereby issues orders to amend and include the following revised guidelines Order dated October 14.”

“Cinema halls theatres multiplexes, drama theatres will be allowed with 50 per cent of their seating capacity in areas outside containment zones only from November 5. No eatables will be allowed inside the cinema halls theatres, multiplexes, drama theatres,” the order read.


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