Rising Covid-19 cases likely to delay biz recovery of PVR, Inox Leisure
Shares of multiplex chain operators PVR and Inox Leisure have corrected 9-10% from their recent highs as rising Covid-19 cases and continuous threat from rapid growth of over the top (OTT) platforms raise concerns over the pace of business recovery.
After consistent reduction in new Covid cases in the last few months, states such as Maharashtra, Punjab, Kerala, Chhattisgarh and Madhya Pradesh have started to see a resurgence in new cases.
More covid cases would mean normalcy gets delayed.
After a lull of three months, Maharashtra, which has the highest number of coronavirus cases in the country, reported over 6,000 daily cases last Friday. On Sunday, the state recorded 6,971 cases and 35 deaths. Mumbai, the state capital, logged 921 infections.
On Monday, Amravati district in Maharashtra was placed under lockdown for a week amid rising cases of COVID-19 in the state.
The announcement for the lockdown in Amravati came hours after the district administration in Pune shut down schools and coaching centres till February 28.
Investors also start to worry about the effect of OTT platforms and delay in movie releases.
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