With theatres in Maharashtra reopening this week, market gurus see more legs to the rally in cinema stocks. In the past three months, PVR’s scrip has risen 28 percent and INOX Leisure’s stock has gained 37 percent.
Shares of these multiplex operators are seen as tactical opportunities to play the reopening theme.
The Maharashtra government has issued guidelines for the reopening of cinema halls, theatres, and auditoriums from October 22 at 50 percent seating capacity.
Multiplex concentration in Maharashtra is 18 percent for PVR and 70 percent for INOX Leisure, and therefore multiplexes re-opening in the state augurs well for both the companies, said Vinit Bolinjkar, Head of Research at Ventura Securities.
The state contributes 25-30 percent to a Hindi film’s box office collections and analysts believe the reopening of theatres is expected to revive the fortunes of the cinema industry.
The content pipeline seems to be very strong and is expected to open with a bang with Rohit Shetty’s ‘Sooryavanshi’ lined up to release on November 5, 2021. Ten other movie releases are slated for December, said Hemang Kapasi, Director – Head of Equities, Sanctum Wealth.