Multiplex Sector - Unlock 5.0 - Angel Broking

Mr. Keshav Lahoti - Associate Equity Analyst, Angel Broking Ltd

Yesterday, the Ministry of Home affairs announced that multiplexes will be permitted to open with upto 50% of their seating capacity with effect from 15th October 2020 outside Containment Zones. It was a positive development for the industry as multiplex will be opening after around 7 months of closure. 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 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.

Source : Equity Bulls

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