Inox Leisure a great value pick at current price.

About the company

Inox Leisure is amongst the largest multiplexes chain having 150 multiplexes and 637 screen spread among 69 cities. It is founded in the year 1999 and having headquarters at Viral Towers Andheri East Mumbai with average revenue at US $1999.5 million.

Inox Leisure Share Price Performance in last 2 years.

Inox Leisure share Price

The stock fell sharply from Rs 511 in Feb 2020 to Rs 159 in May 2020. Since than stock is moving up and presently trading above Rs 300 level. The stock is having a support at Rs250 to Rs 300 level.

Theatres occupancy at 50%

The current occupancy limit set by Centre is 50% to curb the spread of corona virus. This is the biggest concern for the industry that is causing distress in financial performance of the company. Tamil Nadu early this year decided to enhance the limit to 100% but has to reverse decision after Centre Government put pressure on State Government. No doubt the Tamil Nadu Government has reversed the decision but it has decided to enhance number of shows. This is good sign for enhancing the revenues for the company. This clearly states that the pressure on the Centre Government to enhance the occupancy rate is mounting.

Outlook for the Sector

President of the Film Federation of India S Thanu highlighted that about 500 movies in different languages are ready to release but the current 50% occupancy is big hurdle for these releases as this is not financial viable for the producers. The biggest film release this year is “Master” which proved to be successful.

Master box office collection day1 Rs20 crore in Tamil Nadu

The film score second position in terms of collection on first day of release in Tamil Nadu State. This shows that how much curiosity is there among the general public to watch movies and the T. N. Government decision to curb occupancy from 100% to 50%  but enhance the shows are positive for the sector and the theatres stocks. 

Current Pandemic situation -Times of India Article

“Coronavirus live updates: India records lowest daily cases since June, says health ministry”. Read article: Click here

This article highlight that corona cases are dropping in the country and sooner or later the occupancy rate will set to increase. This will be positive for the sector and stocks in particular.

How to buy Inox Leisure shares?

The best way to buy stock systematically in four equal installments and average the stock on 5% fall from the last purchase price. In two or three years you will find the stock back to precovid level price.

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  1. akhil


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