Occupancy uptick, content pipeline drive multiplex stocks' rally

More state governments could join Maharashtra in easing restrictions ahead of the festive season

Multiplex stocks gained 6-8 per cent in Monday’s trade after Maharashtra eased restrictions on movie exhibition, with other states expected to follow suit. Maharashtra has allowed theatres to operate at full capacity from October 22 and will join other states like Karnataka and Rajasthan, which have allowed 100 per cent occupancy.

While PVR gained 5.7 per cent, Inox Leisure surged 8.1 per cent on Monday. Analysts highlight that multiplexes weren’t rerated as much as other “unlock” themes, and valuations were at a discount to earlier levels. 

Currently, most states have occupancy (50-60 per cent) or timing or staff vaccination restrictions. The Maharashtra