Stocks dancing to the tune of 24 X 7 Model Shop and Entertainment Act- watch on
On Wednesday June 29, 2016 the cabinet made a key announcement on Model Shop and Entertainment Act, which will enable restaurants, multiplexes, malls and local markets to remain open round the clock 24X7. This new development will boost the business and start-up community. It will also bring incremental tax income in government’s pocket and will generate employment opportunities. The Act is a win-win situation for all parties which involve companies, government and consumers.
On this card played by the government, we have evaluated last one-week’s performance of two affected sectors, which are- Entertainment and Retailing sector.
Entertainment Sector-
We have analysed 32 companies in Entertainment sector according to their last one-week’s performance. Among 13 companies which have given returns of more than 1 per cent, we have picked out our top five performers.
| Industry- Entertainment |
| Company Name | 1 W Return % | Market Cap | CMP |
| Mukta Arts Ltd. | 27 | 175 | 76.75 |
| Picturehouse Media Ltd. | 12 | 44 | 8.50 |
| Baba Arts Ltd. | 11 | 29 | 2.79 |
| Tips Industries Ltd. | 9 | 103 | 67.95 |
| UFO Moviez India Ltd. | 7 | 1554 | 573 |
Among top five stocks Mukta Arts has given highest returns of 27 per cent followed by Picturehouse Media (12 per cent), Baba Arts (11 per cent), Tips Industries (9 per cent) and UFO Moviez India (7 per cent).
Retailing Sector-
The retailers will have a gala time with the government’s announcement on 7th pay hike and Model Shop and Entertainment Act. This will help retailers to increase their sales in near term. So we have analysed retailing sector performance as well. Out of 10 retailing companies we have chosen our top five on the basis of last one week’s returns.
| Industry- Retailing |
| Company Name | 1 W Return % | Market Cap | CMP |
| Archies Ltd. | 8 | 83 | 24.50 |
| Trent Ltd. | 6 | 5942 | 1792 |
| V2 Retail Ltd. | 5 | 145 | 58.45 |
| Shoppers Stop Ltd. | 5 | 3181 | 380 |
| Bata India Ltd. | 4 | 7086 | 552 |
Out of 10 companies, 7 companies have given positive return in the range of 2.76 to 8.43 per cent in last one week. Archies has topped the list with 8 per cent returns. Returns of our other four retail treasures are: Trent (6 per cent), V2 Retail (5 per cent), Shoppers Stop (5 per cent) and Bata India (4 per cent).
The impact of Shop and Entertainment Act will not be seen overnight. But after implementation, we can see more improvement in the companies belonging to these sectors. Till the time we can take a wait and watch position.