Moneycontrol Bureau
Here is a midcap stock with a market capitalisation of Rs 737.73 crore and a potential to give around 32 percent returns. Religare is bullish on Shemaroo Entertainment and reiterates a buy rating with a target price of Rs 400 per share. The reason for Religare's bullishness is Shemaroo's recent deal with an over-the-top (OTT) video-on-demand platform HOOQ for over 1000 movie titles.
HOOQ, launched by Singtel, Sony Pictures and Warner Bros, is a premium video-on-demand (VoD) service, offer priced at Rs 199 per month for India.
"An improving device and network eco system will continue to drive OTT platforms into India who will then need to buy local content. Shemaroo is already seeing over 50 percent growth in the new media space, and new platforms such as these will enhance content monetisation opportunities," Religare says in a note.
It expects Shemaroo to deliver 24.5 percent earnings per share (EPS) growth over the next two years. Shemaroo's new media contribution is already at 17 percent of revenue.
On Friday, Shemaroo Entertainment ended at Rs 271.40, down Rs 5.90, or 2.13 percent. Posted by Nasrin SultanaFollow @NasrinzStory
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
