As covid cases in India rise yet again, these stocks take a beating
Premium- India's covid cases crossed 4,000-mark after nearly 3 months
Multiplex stocks were under pressure on Monday as covid cases started to rise again in India with the country reporting record weekly Covid-19 cases in three months. Shares of PVR plunged about 3% to ₹1,768 whereas that of Inox Leisure declined over 4% to ₹480 apiece on the BSE in Monday's trading session.
India's covid tally crossed 4,000-mark after nearly 3 months. This sudden hike in Covid-19 cases have been driven by Maharashtra and Kerala as the two states are responsible for 60% of the country's cases reported in the week.
The Maharashtra government on Saturday made the use of face masks mandatory in the state as the Covid-19 spike continues. According to a public order, masks have been made compulsory in closed public spaces such as trains, buses, cinemas, auditorium, offices, hospitals, colleges, and schools.
The Maharashtra health department has also asked district and civic authorities to ramp up coronavirus testing as the numbers of samples being examined had fallen while cases were rising.
With various covid-19 wave’s and restrictions hurting revenues, movie theatres started signs of recovery as people started stepping out and spending after lockdowns in states across the country were eased amid decline in cases and increase in vaccination.
Box office blocks of seats have been selling in large numbers since January. A report by Group M and Ormax Media puts all-India ticket sales above a monthly average of over ₹1,000 crore in the first four months of 2022. However, the rise in covid cases has investors fear a decline in footfall.
Leading multiplex chain operator PVR reported narrowing of its consolidated net loss to ₹105 crore for the fourth quarter ended in March 2022. On the other hand, Inox Leisure's net loss narrowed to ₹28 crore for Q4FY22.
Earlier this year in March, in a positive development, PVR and Inox Leisure announced the merger to create the largest multiplex chain in the country. The combined entity will be named PVR INOX Ltd with the branding of existing screens to continue as PVR and INOX, respectively. PVR and Inox merger will create a multiplex behemoth with a network of 1,500+ screens across India.