Eros International, a potential multibagger: PN Vijay

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Vijay told CNBC-TV18, "Eros International is a very interesting media stock. Media is a very broad-term; you have print, television etc. Eros works in the film space. It is a long standing company, more than 30 years, with a large international footprint also. It co-produces and distributes films. One should say this is a riskier part. The whole film industry is risky, one should admit. So, within the film industry, it is equally risky."

He further added, "They have an excellent library of more than 1,200 films. When you have library, you get an annuity of different types of incomes, television distribution, internet distribution and many other distributions."

"In the last quarter, Eros has done very well. It has posted a sales increase of about 37% and an EBITDA increase of close to 40%. It has got a price earnings multiplier of about 12-13, which is pretty good for a media stock. So, I am quite comfortable about media."

"The other thing about Eros is that 'Houseful2' was a blockbuster. When you look at the media stock, you have to understand that what the pipeline is going forward. 'Houseful2' apparently was a great success. 'Vicky Donor', which was a small budget film, was also a great success. So, FY13 looks excellent for Eros."

"Media stocks are very risky stocks. So, one should understand that when one is buying a media stock, one is buying a risky counter. But in the next two years, Eros could be a multibagger."