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Tuesday, March 8, 2011

Hot Pick : Eros International Media Ltd. Bse Code: 533261

Eros International Media is a global player in the Media business operating on a vertically integrated studio model controlling content as well as distribution & exploitation across all formats globally, including cinema, digital, home entertainment and television syndication.

Established in 1977, Eros has over three decades of market leadership in creating a global platform for Indian cinema. The group has an enviable distribution network that spans across 50 countries and over 27 dubbed foreign languages, with offices in India, UK, USA, Dubai, Australia, Fiji, Isle of Man and Singapore. Eros has built a successful business model by combining the release of a portfolio of over 70 new films every year with the exploitation of a valuable film library of over 2000 film titles, making it undisputedly one of the largest content owners in the business.

In 2006, Eros plc, the holding company of the Eros Group, became the first Indian media company to obtain a listing on the Alternative Investment Market (AIM) of the London Stock Exchange.

The company came out with an IPO last year at a price of Rs. 175 per share which was heavily over-subscribed and it listed at a price of 213. At current price of 140, it is available at a massive discount to it's Ipo listing price. I believe this is only due to the current subdued overall market conditions, and fundamentally, this company is very sound. The company has been posting good Earnings consistently and the share is available in a single digit PE ratio, which is a steal for a front-line Media stock. The company has at least 10-12 BIG releases lined up this year. Films like Game starring Abhishek Bachchan, Zindagi Milegi Na Dobara, starring Hrithik Roshan, Abhay Deol, Mausam starring Shahid Kapoor, Ra-One starring Shahrukh Khan, Rana starring Rajnikant.....and the list goes on. To my mind, it's a great investment buy at current price and has the potential to give Multi-bagger gains.

Company websites: http://www.erosentertainment.com and http://www.erosintl.com

Cheers!

12 comments:

real value said...

Dear SS
I bought cronimate at 100 , what should i do . Pl advice......
Regards

real value said...

Dear SS
I have Cronimate @ Rs.100/- and Geodesic @101/- . Pl advice what should I do. Yr sincere advice is solicited.

Superstar said...

Hi Real value, you are in good profits in Cronimet which is now above 130. You could book partial profits if you see another 5-10% rise in it for the short term. It is a hold for the long term. Geodesic also you can hold for the time being. And you can accumulate Eros International at current price.

Cheers!

amit golchha said...

dear sir
i personally feel that rolta india is also a good stock and can easily touch Rs 200 target within a month time from current level of 145

raj said...

hi superstar,

thanks for cronimet appreciated 60%.do u recommend accumulation of geodesic or hold the current?

cheers.

real value said...

I suffered loss in souther ispat and k sera but pleased to recover from cronimate. Eros international is a good stock , I totally agree with. In one year time frame, investors can gain decent profit.

Superstar said...

I'm happy that Croniment has gained nearly 90% in a short period. It touched a high of 150 today. One may book at least partial profits in it and invest the money in EROS International. Eros is available at a mouth-wateringly cheap price right now and it is one of the biggest players in Bollywood. It has quite a few big films lined up which can be big hits......Zindagi Milegi Na Dobara, Ra-One, Rana, Mausam, Rockstar, Desi Boyz, Agent Vinod. Even a small film like Challo Dilli may give a pleasant surprise at the Box Office. I believe that the valuations of Eros International will eventually be re-rated upwards.

Cheers!

real value said...

Dear SS
I m still holding some shares of Cronimate bought @95 should I continue to hold or exit although I sold some shares already. Pl also advice me that I m holding Geodesic bought @100 what i should do. Despite of good result stock is not moving up side.Need yr sincere advice.
Thnks and regards

Superstar said...

Hi Real Value, you are sitting on fabulous profits in Cronimet alloys, if I was you I would book profits now. Reinvesting that money in Eros International would be a good idea. You could also sell Geodesic and buy EROS in its place.

Cheers!

raj said...

hi superstar,

is srilakshmi cotsyn good enough for the long term investment after the correction to 98 from 160?

cheers.

Superstar said...

Hi Raj,
Yes, I guess so. You could start nibbling at it for long term. You can also buy EROS INTNL.

Cheers!

raj said...

thnx superstar....

is ksera a dead stock now or is there any hope to it?
regards.