Shares of Mukta Arts, one of India's leading production houses founded by Bollywood filmmaker Subhash Ghai, extended their gaining streak for the third straight session and surged 5% intraday today. The microcap stock has been rising for the last three sessions and gained 10% during the same period.
Mukta Arts shares got a boost today after its Bahrain-based subsidiary, Mukta A2 Multiplex, signed a deal with Saudi Arabia’s Al-Othaim Investment Company to establish and operate cinemas across the Kingdom of Saudi Arabia.
“Mukta A2 Multiplex W.L.L., a subsidiary company in Bahrain has entered into an agreement with Saudi Arabia-based Al-Othaim Investment Company to establish and operate cinemas across the Kingdom of Saudi Arabia,” the company said in a post-market release on Wednesday.
As per the release, the company wants to expand its presence in the tier-two and three cities of Saudi Arabia, which are experiencing dynamic growth.
“Mukta Arts Limited is not currently engaged in direct investment but has positioned itself through contractual agreements solely focused on providing management and operations services,” the release highlights.
Cheering the news, Mukta Arts shares gained as much as 5% to hit its upper circuit limit of ₹82.68, while the market capitalisation climbed to ₹185 crore. The stock touched its 52-week high of ₹90.39 on October 12, 2023, and a 52-week low of ₹41.62 on March 28, 2023.
Early this month, Mukta Arts, which is into entertainment, exhibition and education businesses, released its financial results for the quarter ended on September 30, 2023. The standalone revenue stood at ₹10.48 crore for Q2FY24, up 166% from 6.3 crore in the same period last year. The profit after tax jumped three-fold to ₹2.55 crore from ₹0.6 crore in the year ago period.
Whistling Woods International, its subsidiary in the film and media education business, recorded a turnover of ₹13.90 corre for the second quarter, an 11% growth quarter-on-quarter. The international subsidiary in the exhibition space consolidated its position with a 34% growth in revenue, as per the company.
Mukta A2 Cinemas, the domestic exhibition arm, posted revenue of ₹34.92 crore, a 40% increase over ₹20.65 crore for the previous quarter, aided by some strong movie releases during the period under review.
Overall, the group posted a 50% growth in consolidated revenue from ₹41.94 crore in the first quarter to ₹62.96 crore in the second quarter of FY24. The strong performance of the company and its subsidiaries resulted in a consolidated profit after tax of ₹4.32 crore as compared to losses after tax of ₹3.8 crore in the previous quarter.
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