Eros International has target of Rs 265: Jigar Shah

Eros International has target of Rs 265, says Jigar Shah, Sr VP and HOR, Kimeng Sec India.

Shah told CNBC-TV18, "Eros International had a very good FY12, about 25% earnings growth and this year also looks very strong. We are forecasting another 25% growth on the back of very strong slate of movies that they have. The first quarter, going by the releases that they have seems to be very strong, I would be surprised if they don’t do at least a 30-40% growth year on year in the Q1. The pipeline for FY13-14 seems very robust."
He further added, "If you look at the way Bollywood is performing is not linked so much with the slump in the economy and gives a good relief amidst all the gloom. The benefit of the cinema exhibition, multiplex, pricing etc is going to the producers like Eros. Also the increase in the value of satellite rights is benefiting them. So overall they seem to be in a very good niche and growing their business quite well. So we feel at PE ratio of 9 times FY13, the stock looks very attractive. Our target price of Rs 265 is based on 13 times FY13 earnings."