Dear All, For the next week we are giving 2 trading calls . The two trading calls has to exited at end of the week ,unless we specify to hold. One has to allocate their funds for all TWO calls . 1.Buy EROS MEDIA 2.Buy AARTI INDS at 88-91 and also at 86-88 with stop-loss 83. Reasons : Above expected results and Technically the stock is in the BULLISH TREND. Buy EROS MEDIA at 178-181 and on declines for target 197 and 210 . Reasons : Industry expectations and rating was mostly HIT rating from all the critics First Day Box office Collections of Ram-Leela Movie– 9 Crore Second Day Box office Collections of Ram-Leela Movie – 11 Crore First Weekend Box office Collections Ram-Leela Movie – 30 Crore The fortunes of the entertainment industry tend to move in line with the prevailing economic environment. But within the industry, there are companies that have built resilient business model around film distribution that allows them to stay insulated and thrive even when spends in the economy slow. Eros International Media (Eros) is one such film distributor and co-producer of mostly Hindi and select regional language movies. The company has managed to derive significant revenues from movies across budget sizes, while reducing business risks by monetising the cable and satellite rights for such films. In the first half of this fiscal, Eros benefited from films such as Grand Masti, Raanjhanaa and Yeh Jawani Hai Deewani. Still, revenues fell 19 per cent over the same period in the previous fiscal to Rs 395.7 crore, though net profit rose 15.1 per cent to Rs 66.3 crore. Here, Eros de-risks its business by pre-selling the overseas rights to overseas entities that have significant presence. Through this, Eros has generally been able to recover nearly 40 per cent of its cost of acquisition of a film, thus, significantly reducing the risk associated with a films offtake as well as ensuring cash flows. The company also recovers 35-40 per cent of its costs by selling movie rights to channels such as Colors, Zee TV and Star Plus. While co-producing, Eros tends to enter into revenue sharing arrangements with stakeholders only after it recovers a significant portion of its investment. Together, these strategies reduce the risk inherent in the film production and distribution business. Thus, Eros has been able to gain from multiple revenue streams and limit the losses quite significantly in case movies do not perform well in theatre screens. According to a FICCI-KPMG report, the size of the Indian film industry is set to grow at a compounded annual rate of 11.5 per cent from 2013 to touch Rs 19,330 crore by 2017. While the company has indicated its intention to remain focussed on mid-sized budget films, a few releases big-ticket releases are on the anvil. These include Kochadaiyaan, Ram Leela, Krrish 3 (released this month) and Happy Ending. The star cast in these movies includes Rajinikanth, Deepika Padukone, Saif Ali Khan, Hrithik Roshan, Priyanka Chopra and Shahid Kapoor, among others, who could pull the public to the multiplexes.
Posted on: Mon, 18 Nov 2013 05:59:30 +0000
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