K Sera Sera has posted excellent June quarter figures. Operating Profit Margin increased from 17.36 to 38.66 and Net Profit Margin increased from 28.58 to 35.87 qtr on qtr sequentially. Income from Operations went up from 465 million to 608 million and Net Profit jumped to 252 million as compared to 181 million in the same quarter last year (Consolidated figures). Standalone Income from Operations jumped from 27.6 million to 233.8 million. Here are some salient points of the last quarter results which would qualify this stock as a buy at current price:
1. K Sera Sera Pvt. Ltd has launched its Greenfield technology of converting a full length 2D feature film into 3D content within just 24 hours.
2. K Sera Sera Miniplex Pvt. Ltd has successfully locked 70 screens across various districts in India.
3. K Sera Sera Box Office Pvt. Ltd is all set to release two movies "332 Mumbai To India" in October and "Chatur Singh 2 Star" starring Sanjay Dutt & Ameesha Patel in November/December this year.
4. K Sera Sera's Television division has started the shows "The Roots" and "Stretch" on Sahara Network.
5. The registration on its portals, Kmediatalent & Klogtalent has reached above 8 lakhs.
6. Further, K Sera Sera Productions Ltd has invested 26.40 crores in Kamla Infrastructure Landmark (P) Ltd making it a holding company.
(Source : http://www.bseindia.com/xml-data/corpfiling/AttachHis/K_Sera_Sera_Productions_Ltd_130810_Rst.pdf)
The valuations of the company look very attractive as the consolidated EPS for June quarter alone stands at Rs 1.21. On an annualized basis, the stock is trading at a PE of just around 2.3 which is ridiculously cheap for a Media Stock. Technically, the stock has consolidated for nearly six months in the price range of 11.10-11.50 and looks ripe for a breakout.