Investor buying stocks irrespective of multiplexes making loss

Mumbai: Nor pandemic, neither the shut box office window has stopped Indian to buy multiplex stocks. Investors are investing in multiplexes even when Indians aren’t rushing to the movies. Box office window being shut for four months now. Investors are hoping that cost cuts and sufficient liquidity will aid the companies to ride through the disruption.

Theater operators PVR Ltd. and Inox Leisure Ltd. made upward movement about 50%, after three consecutive months of losses due to lockdown. The shopping malls, restaurants and cinemas were closed.

According to recommendations compiled by Bloomberg, ‘PVR has 18 buys, six holds and four sells. Inox has 16 buys, three holds and a sell’.  The data show both stocks have an upper circuit. The  PVR stock rose from 1,208.56 rupee to 1,309.65 rupees and   Inox at 303.60 rupees compared with 289.78 rupees.

India makes the most number of films in the world, and Bollywood has long been resistant to shifting releases online. Now lockdown has given way to release movies on  streaming platforms owned by Netflix, Disney, and Amazon. Multiplexes are still waiting for restrictions to ease to welcome back the audience with safety measures.