The Hindu Business Line : Theatre stocks up on tax cut hopes

Stocks of Cinemax, Shringar Cinemas and Pyramid Saimira flared up sharply on the bourses on the back of heightened trading volumes. According to punters, select traders are mopping up these stocks on the expectation that a cut in entertainment tax is now a distinct possibility. The Centre has asked various State governments to reduce the entertainment tax on films to around 25-30 per cent.

The Ministry of Information and Broadcasting (I&B) has constituted a committee of officials with representatives from State governments to find ways and means of reducing entertainment taxes across the country. According to brokers, this would reduce admission price of tickets in theatres with beneficial consequences for sales revenues for those engaged in the entertainment business.

Cinemax jumped 15 per cent on Thursday at Rs 156.10 with 10.57 lakh shares changing hands against its two-week average of 1.28 lakh shares; Shringar Cinemas gained 4.8 per cent at Rs 64.60 as trading volumes doubled to 5 lakh shares against two-week average figure of 2.34 lakh shares; and Pyramid Saimira Theatre jumped 2.05 per cent at Rs 343.70 with 10.66 lakh shares changing hands against its 2-week average of 1.8 lakh shares.

K.S. Badri Narayanan

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