Shares of PVR Inox Ltd. gained on Wednesday after the GST Council lowered taxes on food and beverages consumed in cinema halls.
The GST Council, at its 50th meeting on Tuesday, decided to lower the service tax levied on food and beverages consumed in cinema halls to 5% from 18%.
Food and beverages are an important source of earnings for the cinema exhibition industry, especially for the multiplexes that earn up to 35% of their revenues from this segment.
Shares of the company rose 0.85% to Rs 1440 apiece compared to a 0.18% advance in the Nifty 50 as of 10:08 a.m. Shares hit an intraday high of 3.31%.
The total traded quantity so far in the day stood at 7.7 times the 30-day average volume. The stock's relative strength index stands at 57.42, indicating that it may be overbought.
Out of the 28 analysts tracking the stock, 24 maintain a 'buy', two recommend a 'hold', and two suggest a 'sell', according to Bloomberg data. The consensus price estimate indicates a 26.1% upside over the next 12 months.
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