This company, and the sector it deals in, are among the worst casualties of the Covid-19 crisis.

An industry body estimated that the sector, which provides around 2 lakh jobs, has lost Rs 9,000 crore in revenue in last six months due to shutdown of operations.

Despite the recent unlocking, concerns over rising Covid cases, which hit the 50 lakh mark this week, has restrained the government from giving a green signal to the sector. It’s no brainer that the company reported almost nil sales and logged Rs 226 crore loss for June quarter, and is likely to post similar numbers for the September quarter as well.

But analysts are hopeful. This company is multiplex owner PVR NSE -0.92 %.

While nobody knows when this sector can resume operations, companies in this space are doing their bit to cut costs, analysts said.

More than 84 countries, including China, Korea, the UK, France, Italy, Spain, UAE and the US, have already opened cinemas to the public, while maintaining a high degree of safety protocols.

Analysts say one can wait and ‘hold’ the stock till things get clearer. Liquidity and cost control would be key for the financial health of the company.

Prabhudas Liladher (PL) said the reopening timelines are highly uncertain, and rising instances of producers opting for over-the-top media platforms are only making FY21 highly unpredictable and a complete washout for the sector. That said, many production houses have have resumed shooting post relaxation in lockdown guidelines, the broidelines, the brokerage noted.

The recently released Hollywood movie Tenet’s collection stood at $200 million and PVR Lanka’s spend per hour to average ticket price ratio (SPH/TPR) of 60 per cent does not indicate any structural behavioral changes in content or food and beverage consumption pattern, reducing the skepticism on valuation, PL said.

PVR operates 845 screens in 176 cinemas in 71 cities in India and Sri Lanka, with an aggregate seating capacity of approximately 1.82 lakh.

“We expect PVR to emerge stronger on three counts: permanent downward reset in cost structure; moderation in capex-competitive intensity, especially in new lease signings; and market share gains from smaller multiplexes or single screens as hygiene/safety would influence consumer preferences,” said Kotak Institutional Equities.