Mukta arts - Turnaround due to Multiplex business?

Hi everyone,

I was looking at Mukta Arts and it seems they are getting into developing multiplexes for cinema goes and have already achieved 50 odds screens.

https://www.moneycontrol.com/news/business/expect-35-marginbahrain-multiplex-mukta-arts_7454021.html

The margins seemed to be much better in this and the company hopes to turn PAT positive by FY17 or so. Looking at the growth of PVR and Inox Leisure, does this seem like a good story for you guys?

 

Nobody is going to watch movies by visiting these theaters in coming years. Trend of watching movies on big screen will diminish..

 

You maybe right for a very long time frame (20+ years) but people go out to watch movies to just get out of the house and for leisure time. Just like you eat outside your house in restaurants. I doubt that it will go away from India very soon. Just my opinion. In any case, I am talking about investing in this stock for 2-3 years timeframe.

 

So next will be theater-in-home or theater-in-smartphone?

 

Digital India will also play a crucial role in eliminating the trend of theaters. Entertainment is already being replaced by YouTube/ Hotstar Apps/ Online sites etc. People already feel sick of watching digital screens and likely to avoid theaters / movies.

It never means that the numbers will also decline as new multiplexes may be opened to increase the topline.

 

I highly doubt that assertion. Experience of watching movies is not only better but it's a social experience. I gave an example of people dining out. Do you think that it can be replaced with dining in? It's because ppl need to go out and meet other people. Do you have a study which supports your point?

 

@dineshkapoor27 , I tend to agree with you about the future of multiplexes. A domain of limited players and a great scope to increase footprint. Can't comment on this specific stock but both INOX and PVR look good over the next couple of years

 

I am super bullish on it.

https://rakesh-jhunjhunwala.in/top-...trategy-for-2016-by-indianivesh/#comment-6310