There is a low likelihood of Maharashtra announcing a complete shutdown, but if it happens then the potential downside would remain at 15 percent and that is where the cinema stocks could bottom out, said Karan Taurani of Elara Securities.

“Maharashtra is 25-30 percent circuit contribution in terms of box office, if it is to announce night curfew then producers would panic and delay the releases, which would be good for the stocks to correct 10 percent from here on,” he said.

Talking about consolidation, Taurani said that it will happen in single-screen because they are struggling the most in terms of the lock-unlock phase.

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“Definitely, PVR and INOX would be eying smaller multiplex chains but some steady business has to happen for 3-6 months for mergers and acquisitions to happen,” he said.

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