Stock prices of most of the publicly listed motion picture companies are on a roll on the bourses. Scrips of these companies have either hit a new all-time high recently or are hovering around their yearly highs. Analysts are bullish on the sector with most of them seeing further build-up on these counters. A recent study has predicted that the film industry would grow at a rate of 25% per annum in value terms to touch the magical figure of Rs 20,000 crore, approximately, by the year 2011.
Leading the pack is the heavyweight Adlab Films, which touched the 52-week high of 1580.05 on Thursday on The Stock Exchange, Mumbai (BSE). Incidentally, the stock was at its 52-week high of Rs 1,549 only a day before on Wednesday, January 2, 2008. PVR, similarly, hit the yearly high of Rs 376.95 on Wednesday, January 2, 2008. The stock is currently trading at Rs 355 levels on the bourses. Inox Leisure had hit its yearly high of Rs 241.45 on January 1, 2008. The scrip is currently trading at Rs 229 level on the stock exchanges.
Shrinagar Cinemas has closed on BSE at Rs 127.5 on Thursday, higher than its yearly high of Rs 126.5 on December 28, 2007. Pyramid Saimira hit an all-time of high of Rs 551 on December 31, 2007, while the stock has slipped to the Rs 500 levels on BSE on Thursday. Shri Ashtavinayak Cine Vision had found its yearly high of Rs 480 on November 26 last year and the scrip has closed on BSE at Rs 455.75 on Thursday.
Analysts predict further run up in these stocks in the near future as most of the companies had hit a high growth trajectory with their recent moves. “Movie stocks would move up further in the near term as their earnings are expected to grow exponentially with their recent expansion and acquisition plans. We see further build up in the stocks in the days to come,” said an analyst with a local brokerage.
According to a CII-AT Kearney on ‘The new economics of the Indian film industry: creativity and transformation’, the film industry, which was valued at around Rs 7,500 crore in 2006 is expected to grow at a rate of 25% to touch Rs 20,000 crore in 2011.