GST boosts the morale of the Entertainment sector
DSIJ Intelligence / 04 Aug 2016
Several studies expect the positive impact of GST to be in the range of 250 to 350 bps on the EBITDA margins of the multiplexes.PVR and Inox Leisure will be the biggest beneficiary of such a bill.
Once GST is implemented, Entertainment sector stands to gain along with several other sectors. Within Entertainment sector the multiplexes may become winners due to lower GST rate implemented. The GST rate could well be 18 per cent on lower side or 20 per cent on higher side.
Currently the multiplexes face an effective tax rate of 22 to 24 per cent. Clearly a savings of lower GST rate will be a big plus for the multiplexes. With the tax component coming down the multiplexes may actually increase the average ticket price and hence improve its revenue.
Several studies expect the positive impact of GST to be in the range of 250 to 350 bps on the EBITDA margins of the multiplexes.
PVR and Inox Leisure will be the biggest beneficiary of such a bill.
Both the stocks are trading in green on Thursday with PVR up by almost 0.51 per cent on intraday basis at 10.50 am; and INOX Leisure is up by almost 2.49 per cent. PVR is trading at Rs 1,104.85 per share; whereas INOX is trading at Rs 276.30 per share.
If you want to stay updated with the share market news today, keep a close watch on the indian stock market today with real time movements like sensex today live and overall stock market today trends. Investors tracking ipo allotment status, ipo news today, or the latest ipo india can also follow daily updates along with bse share price live data. Whether you are learning how to invest in stock market in india, preparing for a market crash today, or searching for the best stocks to buy in india, insights on top gainers today india, top losers today india, trending stocks india and long term stocks india help in making informed investment decisions.