PVR Inox Shares Fall Nearly 2% As Karnataka Proposes Movie Ticket Price Cap At Rs 200
Shares of PVR Inox fell as much as 1.98% to Rs 970 apiece. They pared losses to trade 0.77% lower at Rs 989 apiece, as of 9:28 a.m.
Shares of PVR Inox Ltd. fell nearly 2% on Wednesday after the Karnataka government issued notification to put a ceiling of Rs 200 on cinema hall tickets including multiplexes for all language films.
PVR Inox has more than 215 screens in Karnataka, accounting for more than 12% of the company's total screens.
During his 16th state Budget speech on March 8, Karnataka Chief Minister Siddaramaiah had announced that the state would cap movie ticket prices at Rs 200 across all theatres and multiplexes, in a move to make cinema more affordable for audiences. "This limit applies to all films, regardless of language, shown in multiplexes within Karnataka," he shared.
"Provided that the cost of the ticket of each show in all theatres of the state including multiplexes for all language films shall not exceed Rs 200 inclusive of entertainment tax," the notification said.
PVR Inox Share Price
Shares of PVR Inox fell as much as 1.98% to Rs 970 apiece. They pared losses to trade 0.77% lower at Rs 989 apiece, as of 9:28 a.m. This compares to a 0.22% decline in the NSE Nifty 50.
The stock has fallen 31.69% in the last 12 months and 24.88% year-to-date. Total traded volume so far in the day stood at 0.30 times its 30-day average. The relative strength index was at 66.30.
Out of 21 analysts tracking the company, 15 maintain a 'buy' rating, three recommend a 'hold' and three suggest 'sell', according to Bloomberg data. The average 12-month consensus price target implies an upside of 25.6%.
