Inox leisure share price gained nearly 5% on Tuesday after the company's qualified institutional placement (QIP) opened for subscription.
With a trend reversal, the stock price of Inox Leisure opened with a gain of 4.16% at Rs 278 and later touched an intraday high of Rs 280, rising 4.91% from the last close of Rs 266.90. Inox stock has gained after 2 days of consecutive fall.
Inox stock has delivered 5.63% returns in one week, although erased 3.57% value in one month and 28% year to date.
Inox stock price is trading higher than 5, 20 and 100-day moving averages but lower than 50 and 200-day moving averages. Market capitalisation of the firm stood at Rs 2,818 crore. Shares of the multiplex quoted a 52-week high price of Rs 510.80 and a 52-week low of Rs 158.20.
The duly authorised committee of directors, on November 9, 2020, has approved and authorised the opening of the QIP, from November 9 2020. It has also approved the floor price for the QIP at Rs 263.10 per equity share.
Angel Broking in its note gave Inox Leisure stock a Buy rating with a market price of Rs 267, at a target price of Rs 350, with an upside of 31.1%.
Keshav Lahoti Associate Equity Analyst, Angel Broking said,"Share prices have corrected more than 40% as all theatres are closed down due to covid-19 issue. Although, long term fundamentals are intact. Covid-19 can lead to further consolidation in the industry."
It added," Few state Governments have not given permission for the theatre industry to start their operation. Yesterday with Pfizer's announcing their Covid-19 vaccine is showing signs of 90% effectiveness is positive for the industry. If an effective vaccine comes to the country, the Government will reduce restrictions on occupancy, food & beverages so companies will be able to report better revenue and profitability. With this announcement, there is a possibility of Covid-19 vaccine in the near future, so investors will relook at multiplex stocks from an investment point of view. We are bullish on PVR and Inox Leisure as they are gaining market share and even after Covid-19 disruption yet long term fundamentals are intact for the company."
The company's consolidated net loss widened to Rs 76 crore in the September quarter compared a net loss of the company stood at Rs 45.60 crore in the corresponding quarter of the previous fiscal.
Total income of the company increased to Rs 176.62 crore in the quarter from Rs 143.34 crore, while its total expenses rose to Rs 292.38 crore in the quarter from Rs 213.34 crore in the year-ago period.
On its Q2FY21 results, the brokerage said, "For Q2FY21 excluding Ind AS 116 impact, Inox Leisure reported revenue, EBIDTA and PAT of Rs.5 cr, -30cr and -48 cr respectively. The result was in line with our expectations. As gradually state governments are allowing theatres to start operation in their respective states, so initially, for next couple of weeks, cash burn will increase for the Company due to an increase in cost such as rent, employee cost. It will take a couple of months for the Company to bring the business back to normal. Once most anticipated movies such as 83, Sooryavanshi hits the screen, Company will report good occupancy rates."