Mumbai: Shares of Inox Leisure fell around 15% and PVR 13% to hit their 52-week lows on extension of lockdown amid talks that theatres will open only by June end and that some production houses are releasing movies online.
Shares of Inox leisure ended at ₹165.25, while PVR closed at ₹746.15 on the BSE today. The stocks have fallen more than 60% from their highs in February.
Inox, in a statement on Thursday, said "It would like to express extreme displeasure and disappointment on an announcement made by a production house to release their movie directly on an OTT platform by skipping the theatrical window run. The decision of production house to deviate from the globally prevalent content windowing practice is alarming and disconcerting."
Mint on Friday reported that Amit Agarwal, country head at Amazon India, tweeted that seven Indian movies—including Ayushmann Khurrana-starrer Gulabo Sitabo—will premier on its Prime Video platform.
Analysts expect theatres to open by June-end, but if covid-19-related concerns persist, this may not be the worst the stocks are capturing. The silver lining is that analysts consider both PVR and Inox as well-run companies, which means some investors will continue to see value for the long term.
Analysts at Edelweiss Securities, however, do not expect popular movies to release on OTT platforms, albeit a few, as cinema screens in general, and multiplex screens in particular, continue to remain the largest revenue source for most movies.
"Until majority of the screens are opened, multiplexes such as PVR and INOX Leisure could start screening popular content and film festivals. We expect occupancy to be low initially given the audience’s reluctance to visit public places and screening of alternate content," the brokerage firm said.