Accumulate Eros International; target Rs 350: Ajcon Global

Ajcon Global is bullish on Eros International Media and has recommended accumulate rating on the stock with a target price of Rs 350 in its December 18, 2012 research report.

"Eros Worldwide FZ LLC (the "Sellers") has submitted to BSE a Notice of Offer for Sale of an aggregate of 25,73,710 equity shares of Rs. 10 each of Eros International Media Ltd (the "Sale Shares") representing 2.8% of the equity share capital of the Company, by Promoter (the "Sellers") through a sale on the separate window provided by the BSE Ltd & NSE Ltd (the "Stock Exchanges") for this purpose." "The Sale shall take place on the separate window of the Stock Exchanges and shall commence on December 20, 2012 at 9.15 a.m. and shall close on the same day at 3.30 p.m. Indian Standard Time ("Trade Date").The issue comprises 2.8 percent of the total issued paid up capital. The Floor Price is Rs. 200." "We believe the Group’s recent tie up with HBO Asia, the regional pay TV leader to launch two new premium advertising-free movie channels, HBO DEFINED and HBO HITS, in India to augur well for the company. In addition, its marketing efforts at the Cannes film festival is expected to open new markets for its films, which will progressively unlock the value of the film library. EIML is a major beneficiary of the opportunity present in Indian Media and Entertainment sector. With due consideration to factors like a) strong slate of movies, b) rights of over 1,100 films, c) unique and derisked business model, d) end to end distribution network, e) strong regional presence, f) television syndication strategy to augur well for the company, g) Clear visibility of revenues for television and music for next two years through pre-licensing underpinning the significant portion of slate cost and minimizing the overall risk profile, h) tie up with Warner Brothers to substantially contribute to bottomline, we strongly recommend to accumulate the stock at this Floor Price with a target price of Rs 350," says Ajcon Global research report. Non-Institutions holding more than 90% in Indian cos Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies 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

Read More