New Delhi. The stock market on Wednesday saw media and entertainment (M&E) companies, including film production, distribution, and exhibition companies, rally up to 20 percent on the BSE. This was due to heavy trading volumes in the market. Mukta Arts, Tips Films, Saregama India, and Zee Entertainment Enterprises gained 6 percent to 20 percent in intraday trade today.

Subhash Ghai-promoted Mukta Arts closed in an upper circuit at Rs 97.09 per share. This rise came after the company announced that Mukta Arts and Zee Entertainment Enterprises (ZEEL) have agreed to satellite and media rights of 37 films over 6 years. This agreement will start on August 25, 2027. The amount of this deal was not disclosed but the company said that it is 25 percent more expensive than the previous deal.

Tips Films shares also closed in an upper circuit of 20 percent at Rs 658 on the BSE. The company is engaged in the business of production and distribution of films, web series, and related content. The company has produced super hit films like Raja Hindustani, Raj, Race, Ajab Prem Ki Gazab Kahani, Tere Naal Love Ho Gaya, and Ambar Sariya. Tips Films had said in its FY24 annual report that the company is set to have 5 to 6 productions per year and has several projects in the pipeline to achieve this goal.

Saregama India shares hit a record high of Rs 622 on the BSE in today's intraday trade, surging 17 percent. The stock has gained 80 percent so far in the current fiscal year 2025. Saregama India is engaged in the business of manufacturing and selling music storage devices such as caravans, music cards, vinyl records, etc. The company is also engaged in the production and sale/broadcasting/transmission of films/TV serials, and pre-recorded programs. Apart from this, the company deals in film rights and events. According to analysts, with a good contribution of high-margin licensing income in sales and increased digital penetration due to tie-ups with over-the-top (OTT) applications, profitability margins are expected to remain healthy. High-margin revenue from licensing has shown an increasing trend over the years and grew by about 16 percent in FY24 (21 percent in FY23).

What is the secret of industry growth
Care Ratings said that with the cheap availability of data and increasing use of smartphones, the digital use of entertainment content is increasing significantly. The movie and entertainment industry is expected to reach Rs 23,800 crore by 2026. However, experts believe that revenue from China and the Middle East will play a major role in the growth of the industry.