Multiplex companies look attractive post correction; PVR, Inox Leisure gain

Multiplex chains are challenging various state governments' decisions on allowing outside food into cinema theatres

Multiplex operators PVR and Inox Leisure were among the top gainers in the BSE 500 index on Friday, appreciating 7-14.5 per cent. The gains came after PVR entered into a three-year deal with ticketing aggregators bookmyshow and PayTM for a convenience fee of Rs4.1 billion, most of which it will receive upfront as advance payment in FY19. Analysts estimate that the incremental convenience fee would offset the profit impact due to lower food & beverage (F&B) revenues. Despite the surge, experts say, these companies look attractive, given their long-term prospects and the sharp decline in their share prices in recent