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Friday, September 3, 2010

Hot Pick: K Sera Sera Nse: KSERAPRO Bse: 532081

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.

Cheers!

7 comments:

amit golchha said...

sir,
i bought a 4000 stocks of k sera sera. what could be possible target for the company. sir wts ur view on SEL Man which is trading at Rs.44. Can it be accumulated

Superstar said...

Hi Amit,

Yes, both of them can be accumulated. For K Sera Sera you can buy even as the price rises because it is currently very cheap and in the case of Sel Manufacturing you can accumulate on dips.

Cheers!

Subhasis said...

hii Sir,
Wishing you a very happy Ganesh Chaturthi... Earlier you recommended K SERA SERA in Oct-Nov 2009. Since then it was into a long consolidation phase. You again recommend K SERA. I really appreciate your view. Can you just say when K SERA SERA shall com up from its hibernation after its long phase of consolidation ? & its immediate target

mithun said...

Dear Superstar, Has Ksera Sera finally come out of it's hibernation? It is 12% up today...
Any thoughts or targets.

Thanks for your guidance.

Superstar said...

Hi Subhasis & Mithun,

Yes, K Sera Sera has come out of its hibernation. Volumes have picked up considerably in the stock along with price movement upwards. The Over Subscription of Eros International's IPO by 27 times augurs well for K Sera Sera too as both are in the same line of business. The valuations of K Sera Sera are dirt cheap in comparison to Eros, and they have a lot of catching up to do. It's a strong buy at the moment.

Cheers!

raj said...

hi superstar,

came across ur blog and found it incredible.now my q is what is the immediate target for k sera sera?
cheers!

Superstar said...

Hi Raj,

K Sera Sera has undergone a correction after moving from 11.10 to 15.25 very fast. Now at present price of 13.10, it has become a VERY STRONG BUY again. Targets can be even 25 plus, in due course of time.

Cheers!