Shares of PVR and Inox Leisure gained up to 17% in Thursday's early session after the government allowed multiplexes and cinemas to open with 50% capacity from October 15 outside containment Zones.
Cinema halls, theatres and multiplexes, however, have to adhere to standard operating procedures (SOP) issued by the Ministry of Information & Broadcasting.
PVR stock opened with a gain of 10% at Rs 1.334 against the earlier closing of Rs 1,213 apiece on BSE. The stock also touched a high of Rs 1,395, up 15% intraday and a low of Rs 1,296 in today's session.
Similarly, Inox Leisure share price opened with a gain of 16.38% today and later touched an intraday high of Rs 318.2, rising 17.63% as against the last closing price of Rs 270.50.
Both stocks have been gaining consecutively for the last 2 days. While PVR stock has risen 23% in one week, the stock price of Inox Leisure has given 15.3% returns during the same period.
On Unlock 5.0, Jyoti Roy - DVP- Equity Strategist, Angel Broking said," Other major relaxations include reopening of schools and coaching institutions in a graded manner from the 15th of October subject to state approvals and conditions. Similarly, the cap on Social, Sports, entertainment, political gathering has been increased from 100 persons subject to either 200 persons or 50% of capacity for indoor events. While no such restrictions have been imposed for outdoor events organisers have to follow SOPs including ensuring wearing of masks and social distancing."
Keshav Lahoti - Associate Equity Analyst, Angel Broking said,"There was a bit of fear among the street also if MHA announce multiplex to start operation they might cap capacity at 25%, which will increase losses for multiplex companies, nothing of that sort happened in the announcement. We believe the initial few weeks will be challenging for these companies as no big movie will take a risk to release in the initial 2-3 weeks. It will take time for them to reach occupancy at pre covid levels. We are positive on Inox Leisure and PVR as long term fundamentals are intact for the industry and stock has corrected 40% from pre covid levels. "Share Market News Live: Sensex rises 460 points, Nifty at 11,360; Axis Bank, HDFC Bank top gainers
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