Eros International Media Ltd. share price target

Eros' revenues came in higher at | 332.1 crore in Q3FY17, down 1% YoY vs. our estimate of | 259 crore. The delta was owing to higher overseas revenues that came in at | 101 crore (30.4% of topline) vs. our estimate of | 54.9 crore. The domestic theatrical, at | 117.9 crore (~35.5% of the revenues) was also higher than our estimate of | 80.5 crore. Both overseas & theatrical included a proportion of catalogue sales monetisation forming ~50% of revenues during the quarter. We note that the company had consciously held back catalogue...

As per transfer pricing changes, the overseas rights including global digital media rights to Eros International Plc, are to be now transferred at 40% of production cost of each film with an additional mark-up of 20% vs. 30% of production cost with a mark-up of 30.0% earlier. During the quarter, overseas revenues were recognised under the revised Relationship Agreement with the parent. The impact of Q1FY17 overseas revenues was also incorporated in the Q2FY17 numbers. Eros India will also hold an equity stake of 10-15% in the global digital business...

than expected monetization of regional movies and catalogue sales. EROS confirmed that realignment of catalogue sales is progressing as planned and Q1 saw a pick-up in catalogue sales. EROS has guided for catalogue sales to be 20% of revenue by end of FY17 and increase to 25% of revenue in the medium term. EROS has also reaffirmed its target to keep receivables under check and is confident of maintaining receivable days at 100 days as in FY16. FY17 slate has seen exit of two bigbudget movies Shivaay' and Singham 3' (Tamil). There has been addition of Kahani 2' and Janatha Garage' (Telugu), both mid-budget movies....

Revenues came in at | 408.2 crore higher than expectations of | 363.8 crore aided by the successful box-office run of some of the Eros banner films such as Housefull 3’, Ki and Ka, Sardaar Gabbar Singh’ (Telugu), 24’ (Tamil), and Nil Battey Sannata’ among a host of other films. The revenues were also aided by satellites sales of some of the movies released in the quarter. EBITDA came in at | 81.0 crore vs. our expectation of | 71.8 crore while margins came in at 19.8%. Though the costs were higher than expectations, increased contribution from the higher margin earning satellite revenues helped Eros in clocking in-line margins. PAT came in at | 58.9 crore, higher than our estimate of | 39.7 crore owing to the beat at the operating performance level and lower than expected tax expenses.

The company has done its best to come clear of the recent allegations. The new transfer pricing mechanism is an added positive. However, clarity on the Eros Now potential and rationale for 10-15% stake would have been better. We value Eros at 8x FY18E EPS arriving at a target price of | 225. We maintain HOLD.

ICICI Securities Ltd | Retail Equity Research Revenues were expected to be subdued in the quarter as it had no big budget movie release. During the quarter, there were six medium...

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 335.4 crore against our estimate of | 359.8 crore. The revenue performance of the quarter was mainly driven by...

despite strongboxoffice performance (Bajrangi Bhaijaan, Srimanthudu, andWelcome Back).Thiscanbeattributedtothepoorstockpriceperformance(halvedinamonth)of its ultimate holding company, Eros International Plc, in which investors have raised...

EIML's FY15 annual report highlights the company's increased dependency on its parent Eros Plc, not only to drive revenue but also to fund working capital and content advances. Deeper analysis indicates that the demand for C&S; rights for pre-released Hindi movies has...

EIML delivered steady operating performance in Q1FY16 on an adjusted basis. Adjusted revenue grew 36% yoy and EBIT grew by 55% yoy. EBIT margin rose ~200bps yoy and was in line with consensus estimates. EIML released two highbudget, three medium, and 11 low-budget movies in Q1. Strong box office...

Tanu aids stellar 1Q performance for Eros Eros International Media (EIML) recorded revenue growth of ~96% yoy aided by strong theatrical revenue with Tanu Weds Manu Returns (Hindi), Masss and Uttama Villain (Tamil) being a mass crowd puller to the theatres. However, the result is not comparable on yoy basis owing to restructuring of Eros Now. Post the result, we have revised our estimates upwards to factor renewed optimism of patrons watching movies in theatres augmented by a strong movie pipeline. We retain our...

EIML is a leading player in the Indian movie industry it acquires, co-produces, and distributes Indian movies across all formats such as cinema, TV, and digital new media. EIML's business model is built around securing content through co-productions and...

Eros International Media ltd, is a part of Eros International Group, engaged in the business of acquiring the film content and distributing the content across multiple formats and geographies. Company acquires film content through...

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...