InvestorQ : Why are multiplex stocks like PVR and INOX down so sharply in the last few days?
Anamika Sodhani made post

Why are multiplex stocks like PVR and INOX down so sharply in the last few days?

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Angel dcosta answered.
2 months ago
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PVR and Inox Leisure have fallen by 16% in the last two trading days amid fears over the new COVID-19 strain that has already shut down much of Britain. With Mumbai announcing night curfew, the multiplex stocks fear that people may take much longer to come back to the multiplexes to watch movies.

In the last two trading sessions, PVR fell by 15% while Inox Leisure fell by 10%. The concern stems from the fact that the latest strain of COVID-19 in UK spreads faster than previous variants. India also announced ban of flights to and from UK till 31-Dec. PVR also took a hit due to its proposal to raise Rs.800 crore via dilution of equity to QIBs on preferential basis.

The stock of PVR also came under pressure after CRISIL warned that lower than expected ramp-up in occupancy could result in high cash losses. This could negatively impact the ratings of PVR. The market worry is that in both the cases, the cash burn could be very high once the footfalls return to the normal levels.

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