Why Media Stocks are in Limelight Today?

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Why Media Stocks are in Limelight Today?
Credit: © Reuters.

By Puneet Sikka

Investing.com -- Multiplex operators such as PVR (NS: PVRL ) and Inox Leisure (NS: INOL ) made their 52-week high today as the Maharashtra government allowed the opening of theatres by October 22nd.

This is big news for cinema hall operators as they have been struggling to stay afloat in the last 18 months since they have not been allowed to function for most of the time during this period.

Although multiplex operators such as PVR has followed some innovative measures such as negotiating with the mall owners to waive off rentals during the time they have been asked to close, it was not sufficient to cover up the entire costs. These operators had to resort to other cost-cutting measures such as reducing the workforce and delaying capital expenditure plans.

Despite this good news, another wave of Covid-19 still poses a big risk to these stocks and investors should take note of this.

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