In this week’s wrapup, we talk about single screen cinemas, India's semiconductor powerhouse dream, why MNC royalties are in a soup, PepsiCo's advertising spends and the Buffett Indicator.

Here’s a recap.

Single screen cinemas are dying... Can we revive them?

If you walk into a single screen theatre in Telangana, you'll probably just find 10 viewers. And that's not just the plight of single screen cinemas in Telangana, but almost everywhere in India. But how did these once celebrated cinemas come to this?

Sure, modern technology, multiplexes and OTT (Over the top) platforms had a role to play in disrupting the cinema viewing experience. But is there more to it?

Find out in Monday's newsletter here.

India's ambitious journey to becoming a global semiconductor powerhouse

Zoho announced plans to launch a commercial semiconductor manufacturing unit in Tamil Nadu. And that's good news if India wants to enhance its semiconductor chip producing capabilities.

But have you ever wondered why we haven't been able to do this so far? In Tuesday's newsletter we tried to answer just that. You can click here to read it.

Why investors hate royalties that Indian subsidiaries pay foreign MNCs

Last week most of Nestle India’s institutional investors turned down its Swiss parent’s proposal to increase royalty payments over the next 5 years. And that sparked debate about the costs and benefits of increasing royalties that Indian companies have been paying their MNC (multinational corporation) parent companies over the years.

So in Wednesday's newsletter we explained the MNC royalty conundrum. You can read it here.

Why are tax authorities running after PepsiCo's advertising spends?

India's tax authorities have been trying to get PepsiCo India to pay taxes on some of their advertising spends. But wait... tax laws allow expenses like advertising as a deduction from a company's revenues. So they only have to pay taxes on the net profits that remain after deducting these expenses.

Then why are the tax authorities after PepsiCo's advertising spends? You'll have to read Thursday's newsletter to find out.

Is the Buffett Indicator foolproof?

India’s stock market capitalisation hit the $5 trillion milestone this week. And that's worrying analysts. They're looking at popular metrics like the Buffett Indicator or the market capitalisation-to-GDP ratio to conclude how overvalued or pricey markets are.

But can you just gauge the market by relying on it? Find out in Friday's newsletter here.

Finshots Weekly Quiz 🧩

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That's it from us this week. Have a great weekend!

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