PVR, Inox Leisure shares surge. Good time to buy now?

Shares of PVR, Inox Leisure surged more than 8% in Monday's trade session after the Maharashtra Government's announcement to open cinema theaters in the state from 22nd October 2021. Stock market participants are further bullish on the multiplex stocks on the back of the reopening theme.

Experts added that one can buy these counters for long-term time horizon as it will take two to three quarters for the Indian theaters to start operations at 100 per cent strength.

Speaking on the reason for PVR and Inox Leisure share price rally; Avinash Gorakshkar, Head of Research at Profitmart Securities said, "PVR and Inox shares are rising due to the Maharashtra State Government's announcement to open cinema theaters from 22nd October 2021. However, they will start operations at 50 per cent strength. So, it is still two to three quarters more when these theaters will start its operations at 100 per cent strength.

Since, these stocks are available at discounted price and market is keeping this discount till FY23, he suggested that one should buy these stocks keeping long-term time horizon in mind. ''However, he said that both PVR and Inox shares have already surged today. So, one should wait for profit-booking and then take fresh position in the counter. However, those who hold these counters can continue to hold the counter for next one to two years,'' Gorakshkar added.

Unveiling investment strategy in PVR shares; Sumeet Bagadia, Executive Director at Choice Broking said, "One can initiate momentum buy in PVR share at current market price for the short-term target of ₹1750 maintaining stop loss at ₹1480 apiece." He advised investors to keep on accumulating till it is above ₹1530 per stock levels.

On Inox shares, Sumeet Bagadia of Choice Broking advised that one can buy and hold the counter at current market price for short-term target of ₹400 to ₹425 apiece maintaining stop loss at ₹350 levels.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.