Multiplex Footfalls... :-) Exclusive coverage..

Finally we have got a mall in our city with a multiplex..( 15 years late hi sahi.. :))... Well, Multiplex is a new destination for all..specially for the ppl who live a life packed with joy , humour, entertainment and exposure.

India has got a new success story called multiplexes.. on one side there's a real estate fall ,but on the same side we have a new story called MULTIPLEX BOOM...

About the Multiplex boom -

India is experiencing a multiplex boom over the last 5 years with more and morescreens being added every month.

• India currently boasts of about ~500 multiplex screens ascompared to ~11,000 single-screens.


• The pace of multiplex roll-outs has been quite speedy, with 3 players reaching close to or above the 100-screen mark this year.


• High visibility of earnings:


• The sector offers a lot of potential andhigh visibility for steady cash flows given the demand - supply dynamics, which are playing out in its favor .


• Even on a very conservative basis, we expect the leading players within the exhibition space to clock a revenue CAGR of 30%-40% over the next two years.



• Supply side - improving dynamics:


• The supply of content is all set to boom with investments of~$1.7bn announced so far in the film production.


• New players are seeking to make a fresh entry into the production space


• The space has also seen real estate supply and regulatory environment improving overtime, thus helping the multiplex players post handsome CAGRs in topline in the last 4-5 years.


• Strong pull from the demand side:
• Multiplexes have been finding increasing acceptance among consumers despite the high differential in ticket prices in multiplexes as compared to single-screen theatres.
• It provides testimony to the increasing prosperity in the country as well as consumers’ willingness to pay for quality .


• Initiating Coverage:


• Existing players in the space will benefit from thisfavorable trend, with the best gains going to players with better location advantages and execution skills.


• On these two counts, PVR Cinemas and Inox Leisure have emerged as our top picks within the space.


• Real Estate Supply

• Multiplexes are often regarded as the footfall magnets for malls.


• The concept of shopping-cum-dining-cum-entertainment outing is gaining popularity among the urban populace, where multiplexesin malls become the most relevant destination choice.


• Almost all upcoming malls have a multiplexoperator as an anchor tenant.


• The pace of mall development will surely ensure availability of quality real estate for multiplex operators.