Eros International..Film Industry....
I wrote about SKS Microfinance IPO on my blog.... I dont know how many of you have sbscribed to SKS Microfinance... but it gave a good return... Touched a high of 1436 .... in any means it is fabulous return in a IPO... SKS Microfinance has still a long way to go... dont who have not sold their IPO shares i would advice not to sell it.. you may hold it for long term.....
Today i am writing on EROS International.... I would love to subscribe for it.... there are many reasons ..... Eros International is coming up with a IPO of size 350 crores.. it is a part of Eros Group , which itself is a global player within the indian media and entertainment sector....
The price band has been fixed between Rs 158 and Rs 175 per equity share. Bids can be made for a minimum of Rs 40 equity shares and in multiples of 40 thereof. The issue will result in a fresh issue of 2.00 crore to 2.22 crore equity shares that will form 21.9 per cent to 23.7 per cent of the post-issue equity base at lower and upper price band respectively.Eros is a very strong plaer in the entertainment industry.. and a strong play on the movie business.... promoters has a strong experience of more than 30 years in indian film industry which is a 95 billion market... which according to me is huge by any means.....
They have excellent experience in acquiring movie rights and distribution network across all over fragmented indian film industry..... Eros has got partnership with Eros plc which is giving them international exposure....
It has got library right of more than 1000 movies as of now.... which is growing day by day. It is also engaged in co–production/ production activity. EIML has registered a revenue and PAT CAGR of 58% and 45% over the past 4 years.....Based on price of Rs 175 (upper end of the price band) and company’s FY 2010 earnings the company will trade at a P/E multiple of 19.44x which is lower than its peers. Also, company looks attractive in terms of P/BV and EV/Sales multiple given that company is expected to grow at a rapid pace as compared to its peers. The pipeline of movies to be released by Eros over the next two years will contribute to its top line growth as well as enrich its existing content library. The company is in a strong position to maintain a sustained financial performance by leveraging its business model as well as its extensive content library and looks attractive as compared to its peers.........
I has make strategy to expand its business further into regional languages film markets like marathi, punjabi , kannada and telugu.......also exploring opportunities in DTH, digital cbale, IPTV and mobile....
Coming down to the company’s financials, during FY06-10 EIML’s topline has grown at 58 per cent CAGR whereas its bottomline has grown at a whopping 158 per cent in the same time. Looking at the valuations we find that issue is attractively priced compared to its peers. At the lower and upper ends of the issue price, the stock is offered at 18.0 times and 19.4 times FY2010 earnings compared to 42 times of UTV software communications and 93 times of Shree Ashtavinayak Cine Vision. Even if we take market cap to sales EIML is available at 2.49 times at upper price band compared to 3.4 times at which UTV Software communications is available. Looking at the growth of Indian film industry, company’s growth and attractive valuation at which issue is available....
What i think is , Media and Entertainment is one sector which can give excellent returns in time to come.... this sector has just started to come in limelight..... previously i have also recommended UTV Software Communications Many times ad it is touching new highs... There are many other stocks... like K Sera Sera, AshtVinayak... they can also give exponential returns in years to come...
Animation is also catching up in india... there are many listed companies like Compact Disc, Crest Animation, and DQ Entertainment... I dont like Compact Disc too much... But there is a interesting story building up in DQ Entertainment... Readers has to find then own... DQ Entertainment is a buy and hold stock.... perfect to fit in portfolio.....
Eros International Stocks can give excellent return in long run......
Hi
ReplyDeleteThanks for suggesting Eros.
I have already invested in Vision Corporation. It looks risky at the outset but there seems to be some value as the promoters want to launch 4 channels. What are your views? Is there a good opportunity to Grad?
On the same count, will Pyramid Saimira make a come back? The price is so very low it looks enticing.
with thanks
Venu
culture blog,
ReplyDeleteI dont track vision corporation... but i tried to find out some positive in this counter but didnt got any.....
pyramid will take proloned time to get back to its original spree.... i doubt... stay away
Micro-Finance to Face Slow Painful Death. SKS Share to enter Free Fall. Sell, Sell, Sell!
ReplyDeleteSKS, the Indian micro-finance giant’s IPO was supposed to signal the coming of age of the micro-finance (MF). Instead, it contained the seed for the destruction of the entire industry. Their Rs 10 share on listing attracted a premium of Rs 975 and such was the investor confidence, it touched a high of Rs 1,490 in a matter of days. Then hell broke loose with the industry hit by charges of them profiteering and causing farmer suicides. Its reverberations were so strong that it had been felt by the industry all over the world. The stock plunged to Rs 890 before recovering to be a tad over its listing price and hovering around this range for the last one week. We expose the dark underbelly of a Frankenstein unleashed by NGOs.
Read more: http://devconsultgroup.blogspot.com/2010/11/micro-finance-to-face-slow-painful.html