40% surge! Why this Subhash Ghai-backed stock is rallying
Mukta Arts, the renowned film production company owned by Subhash Ghai, has seen a significant surge in its share price. The stock has risen by nearly 40% over the past five trading sessions. On Thursday alone, it gained more than 15%. This upward trend is largely attributed to a recent six-year agreement between Mukta Arts and Zee Entertainment for 37 films.
Mukta Arts and Zee Entertainment ink 6-year deal
The agreement between Mukta Arts and Zee Entertainment, as disclosed in a company release, involves the assignment of satellite and media rights for 37 films. These rights are valid for a six-year period starting from August 25, 2027. The deal is valued at 25% more than the previous agreement between these two entities but the exact amount remains undisclosed.
Agreement's impact on Mukta Arts's management and share price
Mukta Arts has clarified that this agreement is part of their regular business operations and does not affect the company's management. On Thursday, the company's shares opened at ₹104 on the BSE, a rise of over 7% from Wednesday's closing price of ₹97.09. The share price further soared to an intraday high of ₹115.08, marking a new 52-week high for Mukta Arts's stock.
Mukta Arts's operational revenue and business ventures
For the fiscal year ending on March 31, 2024, Mukta Arts reported an operational revenue of ₹209 crore. The company is not only involved in film production but also operates a chain of multiplexes known as Mukta A2 Cinemas. This diversification into different entertainment sectors could be a contributing factor to its strong financial performance.
