Shares of Subhash Ghai’s Mukta Arts extended the rally on September 26, skyrocketing as much as 18 percent to hit a 52-week high of Rs 115 NSE.
The sharp upmove in the past two sessions comes after Mukta Arts inked a pact with Zee for the assignment of Satellite and media rights of 37 films to the latter for a period of six years commencing from August 25, 2027.
Although the company did not disclose the final deal amount, they revealed that the deal was made at a fee 25 percent higher than the last agreement between the two companies.
The entertainment company has a long history of working with Zee Entertainment, frequently licensing its films to the broadcaster. In 2021, the two companies signed a deal wherein Subhash Ghai would produce three films for Zee Studios.
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Mukta Arts holds an impressive library of more than 42 films, including 35 blockbusters. Helmed by Subhash Gill, the company is an entertainment firm with its arms delving into almost every aspect of the industry from film production and distribution, television content creation, to equipment hiring for filmmaking.
It not only owns the studio AUDEUS but is also involved in renting out filmmaking equipment. Further, the company has diversified its operations, delving its arms into the distribution sector of the film industry. For the quarter ended June 2024, the company had clocked in a net profit of Rs 98 lakh while presenting net sales of Rs 7.02 crore.
At 11:19 am, Mukta Arts shares were trading 16 percent higher at Rs 112.90 on NSE. So far this year, the stock has gained just 43 percent, compared to an 18 percent rise in benchmark Nifty.
In the last one year, the counter has rallied more than 80 percent, beating Nifty's returns of 30 percent during this period. In the last five sessions alone, the stock has zoomed 40 percent.
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