PVR, Inox Leisure shares jumped 8% amid unlock theme – should you buy? Analyst gives strategy

Multiplex chains PVR, Inox Leisure stocks surged up to 8 per cent on Monday as restrictions ease and the unlock theme takes the forefront. The new optimism is on the back of growing vaccinations and a decline in the daily positivity rates.

Inox Leisure shares jumped 8 per cent to Rs 331, while PVR shares gained around 7 per cent to Rs 1487 per share on the NSE in the intraday trade today.

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Tradeswift Director Sandeep Jain is bullish on the unlock theme and he believes that leisure stocks such as Inox and PVR have recently witnessed a correction. The stocks are now rallying along with the other beneficiaries from the travel and hotel sectors.

Both stocks are technically good and should improve on fundamentals, he adds.

Theatre stocks should perform well going ahead, as despite weakness in markets today, they were surging, Jain said. Both PVR and Inox are listed in the mid-cap space and are also in the Nifty Media index.

PVR shares have jumped up to Rs 1450 levels almost after 6 months, it has made a 52-week high of Rs 1592 per share on the BSE on January 21, 2021. While Inox shares breached Rs 330 per share mark almost after four months, it hit Rs 358.55 apiece as 52-week high on the BSE on January 11, 2021.

Hotel stocks, aviation stocks have seen positive movement over many trading sessions now.

Prime Minister Narendra Modi's latest affirmation of reviving the tourism sector has created a buzz in the travel and entertainment stocks, Jain said.

This is in the line with the hotel stocks which are buzzing amid the advance booking ahead of festive season.

Jain says, along with travel, hotel, entertainment stocks one should also keep an eye on educational stocks such as Navneet and Kokuyo Camlin.