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CRISIL SEES GOOD UPSIDE IN UTV
Posted by :
esnmrtyCrisil sees good upside in utv soft-bloomberg utv...
3/5 fundamentally, 5/5 growth potential as per CRISIL
Posted by :
ultimatenvestorExpecting downside to be capped at around 330, will be a good buy at that price for the long term....
3/5 fundamentally, 5/5 growth potential as per CRISIL
Posted by :
samirarora
CRISIL Equities assigns Fundamental grade `3/5` to UTV Software Communications Ltd.
This grade indicates that the fundamentals of the company are ‘Good’ relative to other listed equity securities in India.
Mumbai, Maharasthra, November 3, 2009 /India PRwire/ -- CRISIL Equities has assigned a CRISIL IER Fundamental Grade "3/5" (pronounced “three on five") to UTV Software Communications Ltd. (UTV). This grade indicates that the fundamentals of the company are ‘Good’ relative to other listed equity securities in India. With respect to valuations, CRISIL Equities has assigned a valuation grade of “5/5” indicating that the stock has ‘Strong Potential Upside’ (Fundamental value of Rs 548, from the current market price of Rs 420. The grades are not a recommendation to buy/sell or hold the graded instrument, or a comment on the graded instrument’s future market price or its suitability for a particular investor.
The assigned fundamental grading reflects UTV’s position as the market leader in the Hindi films business, its diversified revenue mix, strong management capability and expected improvement in profitability as its investments in the gaming and television broadcasting businesses begin to pay off. UTV’s comprehensive business model has enabled it to rope in Walt Disney as a strategic partner with a 60% stake (Walt Disney’s voting rights are capped at 32.1% for a period of 4 years ending November 2012). CRISIL Equities believes this association with Walt Disney is a positive factor from a strategic perspective and will also provide it access to overseas markets. The grading is, however, tempered by the inherent risks associated with the films business, such as project execution risk and susceptibility to changing audience tastes and preferences, and uncertainty of success in the games development business.
CRISIL Equities expects UTV to display robust revenue growth of 37% CAGR over the next 3 years to touch Rs 15.7 billion by FY12 on the back of strong growth in the films business, the broadcasting segment gaining traction, and the planned release of 3 large Intellectual Properties in the console games development business. With investments beginning to generate returns and content being effectively monetised across various media platforms, CRISIL Equities expect UTV’s profitability to improve. The EBIT margin of the company is expected to improve markedly from negative 15% in FY09 to around 17% in FY12. Driven by higher profitability, CRISIL Equities expects Earnings per share (EPS) to jump to Rs 53 in FY12 after a 47% slump to Rs 7.2 in FY10.
UTV’s return on capital has been adversely impacted by investments made in the television broadcasting and gaming businesses (Rs 7 billion as of March 2009). During FY09, its return on equity (RoE) was 6.8%. CRISIL Equities believe it will take another 12-18 months for investments made in these businesses to pay off. Consequently, UTV’s RoE is projected to improve significantly only after FY11 and touch 16% by FY12.
On the valuation grading, CRISIL Equities has used Sum of the Parts (SOTP) approach to arrive at the fundamental value for UTV. Based on the SOTP method, the fundamental value for UTV is estimated at Rs 548 which translates into a valuation grade of “5/5” indicating that the stock has ‘Strong Potential Upside’ from the market price of Rs 420 (as on October 30, 2009)
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UTV GOOD BUY ONLY AT 320
Posted by : cautionUTV becomes a very good buy in this correction, wait for the downside to take it to around 320 and only then take the plunge. ...
Better to average and hold
Posted by :
timnox01Samir Arora whereart thou in this fall ? Any comments ?...
Better to average and hold
Posted by : pkumar73I feel 340 levels will be better for averaging this stock...
SELL SELL SELL - RESULTS DISAPPOINT
Posted by : timnox01Expected numbers not delivered by utv ,markets going down, better to sell now and buy at 20% lower @320....
UTVSOF Q2 Numbers Out
Posted by : pms.swastika
UTVSOF Q2 Numbers Out:
Standalone Net Sales at Rs. 79.23 Cr Vs Rs. 33.62 Cr (+135.66%) (QoQ)
Standalone Net Profit at Rs. 2.75 Cr Vs Net Loss of Rs. 1.83 Cr (+150.27%) (QoQ)
Regards
Swastika PMS...
NSE Announcements on UTV Software
Posted by : MMB MessengerUTV Software Communications Limited has informed the Exchange regarding the consolidated Results for the half year ended on 30-SEP-2009 as follows: Net Sales of Rs. 32103.29 lacs for half year ending on 30-SEP-2009. Net Profit / (Loss) of Rs. (1502.8) lacs for the half year ending on 30-SEP-2009....
NSE Announcements on UTV Software
Posted by : MMB MessengerUTV Software Communications Limited has informed the Exchange regarding the standalone Results for the half year ended on 30-SEP-2009 as follows: Net Sales of Rs. 11285.47 lacs for half year ending on 30-SEP-2009. Net Profit / (Loss) of Rs. 92.32 lacs for the half year ending on 30-SEP-2009....
NSE Announcements on UTV Software
Posted by : MMB MessengerUTV Software Communications Limited has informed the Exchange regarding the consolidated Results for the quarter ended on 30-SEP-2009 as follows: Net Sales of Rs. 23451.79 lacs for quarter ending on 30-SEP-2009 against Rs. 8651.5 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 830.59 lacs for the quarter ending on 30-SEP-2009 against Rs. (2333.4) lacs for the quarter ending on 30-JUN-2009....
NSE Announcements on UTV Software
Posted by : MMB MessengerUTV Software Communications Limited has informed the Exchange regarding the standalone Results for the quarter ended on 30-SEP-2009 as follows: Net Sales of Rs. 7923.47 lacs for quarter ending on 30-SEP-2009 against Rs. 3362 lacs for the quarter ending on 30-JUN-2009. Net Profit / (Loss) of Rs. 275.35 lacs for the quarter ending on 30-SEP-2009 against Rs. (183) lacs for the quarter ending on 30-JUN-2009....
best stock for long term
Posted by : GuestQ2 results today, do or die situation for small investors, hope for the best....
best stock for long term
Posted by : timnox01
Hi Nikki,
Is it in a weeks time or a years time ?...
best stock for long term
Posted by : ultimatenvestorUTV is becoming ripe for a correction in the short term, Last week it made a low of 415 and a high of 465 and now on its way down once again, making lower lows and lower highs, if markets correct it will loose around 25% in no time, sell now and buy at around 325 to 340....
