Shares of multiplex operators PVR and Inox Leisure hit their respective 52-week highs and rallied up to 18 per cent on the BSE in intra-day trade on Monday after the Maharashtra government announced the opening of cinema halls and multiplexes in the state from October 22.
Among the individual stocks, Inox Leisure rallied 18 per cent to Rs 412.20, surpassing its previous 52-week high of Rs 384.10 registered on September 22, 2021. PVR surged 10 per cent to Rs 1,662 on the BSE in intra-day trade. The stock surpassed its previous high 1,631.85 hit on September 22.
At 09:45 am; both these stocks erases partial gains, with the Inox up 10.5 per cent at Rs 387 and PVR traded 6 per cent higher at Rs 1,599 on the BSE. In comparison, the S&P BSE Sensex was up 0.50 per cent at 60,348.
Maharashtra is one of the largest markets for cinema theatres with a contribution of around 25 per cent of the Hindi box office revenue. It is also the only large state in the country which had not yet allowed the cinema halls to reopen since the Covid-19 restrictions imposed after the second wave.
Maharashtra Chief Minister Uddhav Thackeray on Saturday said cinema halls and drama theatres in the state will be permitted to operate from October 22 on the condition that they follow all the protocols required to prevent the spread of coronavirus, the PTI reported. CLICK HERE FOR FULL REPORT
The media & entertainment (M&E) sector was projected to rebound from the effects of a cataclysmic year and reach revenues of Rs 1.73 trillion in 2021. The growth estimate was based on India’s fast-paced economic recovery and favourable consumer sentiment with the gradual return to normalcy.
However, the second wave of the virus towards the end of the financial year under review could alter the projection significantly. The sectoral environment notwithstanding, the digital and online gaming segment will continue to grow at a favourable pace on the back of the increasing shift towards digital platforms and the deepening penetrationof smartphone and internet across the country, PVR said in the financial year 2020-21 annual report.
While cinema halls have been allowed to open in majority of the states across the country, but they are operating at varied level of restriction in terms of both time and capacity. Since Hindi content has been limited therefore regional and English movie releases have supported the operations so far.
PVR has undertaken steps to reduce cost and augment liquidity over the past 18 months. After the second wave of Covid-19, it has been successful in negotiating with majority of mall owners, wherever operations have been resumed, for waiving off rentals for the entire closure period along with revenue sharing arrangements or lower guaranteed payments from second quarter of fiscal 2022 onwards. Besides, the company has also conserved cash by reducing its workforce and deferring maintenance outlay and capital expenditure (capex), the rating agency CRISIL had said in rationale. CLICK HERE FOR FULL REPORT