Buy UTV Software Communications; target of Rs 620: Bonanza

4644 Investors following UTV Software. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy UTV Software Communications; target of Rs 620: Bonanza

Bonanza is bullish on UTV Software Communications and has recommended buy rating on the stock with a target of Rs 620 in its March 14, 2011 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Hold Jayshree Tea; target of Rs 192: SKP Securities Buy Tata Motors; target of Rs 1592: KRChoksey Sell Infosys Fut between Rs 3130-3140: IIFL ALSO READ See previous views by Bonanza See what other Experts & Brokerages are saying about UTV Software See messages about UTV Software UTV Software BSE | NSE 07/03/12 Are Mutual Funds betting on UTV Software?

Bonanza is bullish on UTV Software Communications and has recommended buy rating on the stock with a target of Rs 620 in its March 14, 2011 research report.

"UTV Software Communications, an integrated media and entertainment company, started its operations as television content provider for Doordarshan and with production of advertisement films in 1990s. The company currently operates in five business segments namely television, production and distribution of movies, games content, broadcasting and new media (includes content on web and mobile). It has subsidiaries with offices across India, Mauritius, UK USA and Japan. Walt Disney holds a strategic stake in UTV."

"On consolidated basis, UTV software has reported good numbers of Q3FY11. Top line stood at Rs 255.14 crore up by 18% YoY and 7% QoQ. PAT increased marginally by 2% YOY at Rs 41.5 crores from 40.5 crores. However the company has reported weaker margins for the movies segment due to lower than expected box office performance of few movies released during the quarter. Profitability for TV and Games segment continued to improve on the back of increased airtime slots, advertisement sales and cost savings. UTV follows the Studio approach in its movie production and distribution business. It has a large number of movies in pipeline with movies like 'Thank You' lined up for release. Moreover 8-10 movies are set to be released in the FY12. Secondly It de-risks its movies' box-office performance by pre-release selling the satellite and music rights, thereby recovering about 50% of its production costs. TV and broadcasting business, constitutes around 40% of the total revenue of the company, is the next key growth driver.UTV particularly focusing on mass specialty` network of TV channels specifically through its Bindass and Action and is gaining popularity with improving TRP numbers. UTV also produces television content for several regional channels. UTV plans to venture in the South Indian languages' movies production to further expand the UTV brand. Gaming and interactive media is another growth driver with the introduction of DTH services. We expect the gaming business to report strong growth once the AAA titles developed by Ignition for PS3 and XBOX 360 are released during FY12 along with new launches which have been lined up by UTV True Games Interactive Ltd."

"The stock has shown smart recovery from its support level of Rs 486 and gaining strength with increasing volumes. Small resistance is placed at Rs 564 level, a confirmatory breakout above this level will take the stock to the highs of Rs 610-20. RSI trading with upward bias also supports the bull run of the stock in the near term. We recommend a buy on the stock with stoploss at Rs 508 for the target of Rs 620," says Bonanza Research 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.

To read the full report click on the attachment