GEPL Capital's report on Shemaroo Entertainment
Shemaroo Entertainment Ltd., at the forefront of the dynamic and growing Indian Entertainment industry, is an established integrated media content house in India with activities across content acquisition, value addition to content and content distribution. Together with film-based copyrights and other entertainment rights the brand "Shemaroo" is synonymous with quality entertainment. The content acquired or produced by them , consisting of complete ownership rights and limited ownership rights are known as their "Content Library”. The Content Library consists of more than 1000 titles spanning new Hindi films like Ishqiya, Slumdog Millionaire, Ajab Prem Ki Ghazab Kahani, Omkara, Dil toh Baccha hai, Chandni Chowk to China, Bheja Fry 2, etc.; Hindi films classics like Mughal-e-Azam, Shree 420, Mera Naam Joker, Amar Akbar Anthony, Namak Halaal, Kaalia, Madhumati etc.; titles in various other regional languages like Marathi, Gujarati, Punjabi, Bengali etc., and a variety of non-film content, as well.
Also Read: Subscribe to Shemaroo Entertainment IPO: Hem Securities
The company plans to scale up their content library driven by ROI. They also plan to enhance their revenue profitability through strategically packaged sales. Further the company wants to create a competitive advantage through marketing strategy & moving up the value chain.
The company has diverse distribution platforms such as home entertainment, television, etc. It has an extensive distribution network which acts as a major competitive advantage. Also its ability to offer” anytime, anywhere” entertainment to the consumers acts as a key advantage which further enhances the company’s ability to establish their content across diverse distribution platforms.
ValuationAt the upper price band of Rs 170 the company is trading at a P/E of 12x on its FY14 EPS. Considering strong growth which the company has witnessed in the number of movie releases across different languages & increasing contribution from catalog revenue we recommend SUBSCRIBE on the issue for listing gains.
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