UTV Software Communications Limited
operates in the verticals of Television,Movies,Broadcasting, Gaming and New Media and is thus close to achieving the status of a 3600 media company. Walt Disney, which is a leading global player in the Media and Entertainment (M&E) Industry,holds 60% stake in UTV.
operates in the verticals of Television,Movies,Broadcasting, Gaming and New Media and is thus close to achieving the status of a 3600 media company. Walt Disney, which is a leading global player in the Media and Entertainment (M&E) Industry,holds 60% stake in UTV.
Investment Rationale
UTV is a 3600 company which is growing across verticals in the media industry. Such a growth is attained by both organic and inorganic means. The company has recently acquired True Games which is inolved in online gaming. By having an alliance with Disney the company is able to use its expertise in various fields like gaming animations, distribution of Hollywood movies etc.
The gaming industry is expected to grow manifolds in the coming years in India. India games which is a subsidiary of UTV has 60%market share in India. Even, in the online and mobile gaming industry,the company is involved actively with the subsidiaries and its strategic partner, Disney for designing games which are made to suit the USA customers, as USA is one of the biggest market for online gaming mainly due to the accessibility of internet and mobile phones.
UTV’s broadcasting business is a low cost model thus reducing the gestation period for the company. All of the channels are in a ‘Pay’and ‘Subscribe’ mode thus generating constant revenues for the company. This segment is expected to break even in FY10 with UTV Movies already in profit in FY10.
UTV has 35 movies on slate to be released in next two years. Of these around 8‐9 movies are of the budget of more than Rs.30 crs. The company is planning to invest around Rs.900 crs in this segment for next 2‐3 years, and is expected to earn revenues in the range of around Rs. 400 crs in FY10. Also because the company follows a studio model & with the company reducing cost of Production the margins in this segment are set to improve going forward.
expecting 15 eps in fy10, 35 eps in fy 11, 63 eps in fy 12 . in last 10 days Goldman Sachs Investments Mauritius I Ltd sold 6.5 lks shares in the open market . last 10 days delivery's 12 laks shares change hand in both exchanges. at avg price of 445.rs. current market price 410 is much lower compare to peers. last month it went up to 570 levels. Walt Disney bought 50 % stake at 750 rs.2 years back . so we can invest for long term and short term prospective
in next 5 days if the scrip holds 400 level it can go to 470 immediately .lower side i can come down to 375 in worst case. scrip can touch 550 in next 3 months.
HAPPY INVESTING
SAHADEV
expecting 15 eps in fy10, 35 eps in fy 11, 63 eps in fy 12 . in last 10 days Goldman Sachs Investments Mauritius I Ltd sold 6.5 lks shares in the open market . last 10 days delivery's 12 laks shares change hand in both exchanges. at avg price of 445.rs. current market price 410 is much lower compare to peers. last month it went up to 570 levels. Walt Disney bought 50 % stake at 750 rs.2 years back . so we can invest for long term and short term prospective
in next 5 days if the scrip holds 400 level it can go to 470 immediately .lower side i can come down to 375 in worst case. scrip can touch 550 in next 3 months.
HAPPY INVESTING
SAHADEV
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