Angel Broking neutral on Fame India

Angel Broking has maintained a neutral rating on Fame India in its August 4, 2008 research report."For 1QFY2009, Fame reported a subdued topline growth of 28.1% yoy to Rs 23.6 cr (Rs 18.4 cr) on a Standalone basis, largely on account of lower Occupancy owing to IPL, which lasted for 45 days and poor quality of content. we expect the company to register a de-growth in Earnings by 3.5% CAGR during FY2008-10. We have reversed our assumptions on the dilution front and are not factoring any dilution in equity as full conversion of outstanding FCCBs (USD 13 mn) is not likely to take place at current levels given the market conditions."

"We have marginally downgraded our Earnings estimates factoring in higher-than-expected Exchange losses and relatively lower Margins. Also, downside risks in terms of Earnings disappointment (owing to higher Tax rate and lower Other Income) cannot be ruled out. At the CMP of Rs 40, Fame India is trading at 10.6x FY2010E EPS. We remain Neutral on the stock." According to Angel Broking report.

Disclaimer: The views and investment tips expressed by investment experts on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

For further details click on attachment......