PVR shares gain after multiplex chain operator hikes ticket prices in Telangana

The shares of PVR traded with a minor gain of 1 per cent to Rs 1,276.50 per share on the BSE in Thursday's intraday trade as then multiplex chain operator PVR Ltd on Wednesday raised ticket prices in Telangana. It said the decision to hike price was in line with the latest directions issued by the state government.

At around 10.25 am, the shares of PVR limited traded with gain of Rs 8.85 or 0.70% to 1269.40 on the BSE. 

Currently, the movie tickets of mainstream seats attract a price of Rs 150, which will be raised Rs 250 + GST, while the recliner seats will be charged Rs 300 + GST as against Rs 250 currently, said the multiplex chain operator in a statement on Wednesday.  

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As of date, PVR operates 62 screens across 11 properties in the state of Telangana as per Zee Business TV report.

Earlier, the Delhi government on Tuesday had ordered the closure of cinema halls, multiplexes, and theme parks under the Graded Response Action Plan (GRAP) after the Covid-19 positivity rate remained above 0.5%.  

Delhi Chief Minister Arvind Kejriwal, who held a high-level meeting on Tuesday, said that as the COVID-19 positivity rate has been above 0.5% for the past few days, the government is enforcing Level-I (Yellow alert) of the Graded Response Action Plan.

Talking about implications of closure of cinema halls and theatres, VK Vijaykumar, Chief Investment Strategist at Geojit Financial Services said Delhi government's decision to shut down theatres and multiplexes will certainly hit the revenues of these businesses.  

"The greater concern is whether other governments too will follow the suit as the Omicron variant spreads. The hit to the revenues of multiplexes is reflected in the reaction of stock prices. Both PVR and Inox leisure are around 30 percent off from their November highs," said VK Vijaykumar.    

He said there is a view gaining ground that the Omicron variant is less virulent, though fast-spreading, and therefore, might be indicating the imminent end of the pandemic.  

"If this holds true, then the closure of theatres and multiplexes may be short-lived and stock prices will bounce back," he added.
Closure of cinema halls due to rising case of omicron has also affected release and box office collection of the movie as Shahid Kapoor-starrer Jersey, which was slated to hit the theatres on December 31, was postponed and Ranveer Singh-led '83' could collect only Rs 95 crore worldwide on the Day 5 of the release.