Multiplex operators spurt on hopes cinema halls may open from Sept

Shares of two multiplex operators advanced 5% to 7% on hopes that the government may re-open cinema halls from September 2020.

Inox Leisure surged 7.49% to Rs 281.95 while the PVR jumped 5.82% to Rs 1334.35.

Meanwhile, the S&P BSE Sensex gained 86.47 points or 0.22% to 38,614.79.

The media reported that the government may open multiplexes from September with limited viewers and strict social distancing rules. Cinema hall operations have been shut since the lockdown was first announced in the last week of March.

Concurrently, a global brokerage has retained its buy rating on both the multiplex stocks as it sees multiplexes as an exponential growth opportunity, a phase that is still due in India.

However, the brokerage has reportedly cut the target price on PVR to Rs 1,540 from Rs 2033.59 and target price on Inox Leisure has been cut to Rs 330 from Rs 422, as it believes FY21 will be a year of disruption for both the companies.

It further added that cost cuts and sufficient liquidity would help the the multiplex operators to manage the phase of disruption and thrive after the pandemic.

On a year-to-day (YTD) basis, shares of PVR have slumped 29.72% while Inox Leisure tumbled 26.05% compared with 6.40% fall in the benchmark S&P BSE Sensex.

Powered by Capital Market - Live News