Eros Research Note

Visit us at www.sharekhan.com November 15, 2010 Eros internationalist Media do of a blockbuster Company details Price target: commercialise cap: 52-week high/low: NSE volume: (No of shares) BSE label: NSE code: Sharekhan code: Free float: (No of shares) Shareholding pattern Public & Others 15% Foreign 8% Institutions 5% Non-promoter corporate 2% emergent Star Buy; CMP: Rs186 Key points Rs247 Rs1,711 cr Rs218/166 30.9 lakh 533261 EROSMEDIA EROSMEDIA 2.0 cr Unique media position with a proven track record: Eros International Media Ltd (EIML) is one of the rare media companies that have shown an impressive and pull aheadable growing even in the recent recessionary phase. Its revenues and net profit have grown at an exponential pace of 58% and 157% CAGR respectively during FY2006-10. To sustain its growth in future, the company has chalked expose aggressive plans to invest close to Rs1,000 crore in co-production and acquisition of movie theater rights over the next 18-24 months in order to more than double over its existing gross block of Rs1,016.4 crore by FY2012E.

A de-risked blood model: Despite being in the film co-production and dispersal business, its unique business model enables the company to recover the hoi polloi of its cost upfront through pre-sales of overseas rights, music rights and air rights (on television and the other emerging delivery platforms like broadband and 3G), and in-film advertising. EIML has an exclusive tie-up with its parent company for international diffusion rights that covers 39% of the cost (30% of full(a) cost with a 30% mark-up, ie 39% of the total cost). Similarly, it has an arrangement with T-series for music rights (wherein it gets 10-15% of the total cost) while television rights cover additional 20-25% of the total cost, thereby taking care of almost 80-85% of the money invested by the company. aureate revenue mix to further boost its profitability: EIML has shown a significant improvement in its OPM on the back of the... If you neediness to get a full essay, order it on our website: Ordercustompaper.com

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