InvestorQ : Why was there such a sharp rally in multiplex stocks like PVR and INOX on Thursday, 05 November?
Rutuja Nigam made post

Why was there such a sharp rally in multiplex stocks like PVR and INOX on Thursday, 05 November?

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3 weeks ago
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Multiplex stocks have not had the greatest of times in the last six months. Malls have been shut and social distancing has kept people away from congregating. In these circumstances, the latest move of the Maharashtra government to allow multiplexes to function comes as a positive surprise for these stocks.

That was finally some good news for the multiplex stocks like PVR and Inox Leisure. Both the stocks had been facing a lot of financial pressure in the last two quarters due to the shutdown post COVID. That was evident in their quarterly numbers too.

Now Maharashtra government has allowed multiplexes to officially open and also function and screen movies subject to checks and balances. This move is very important as the state of Maharashtra alone accounts for nearly 35% of the total revenues of multiplex companies.

In the latest quarter ended Sep-20, both PVR and INOX Leisure had reported deep losses due to lack of any worthwhile business, except for some food and beverage shipping online. On Thursday, the stocks of both companies were up over 8% in trades and they finally see some hope that footfalls will start all over again.

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