Saturday, March 14, 2015

SHEMAROO ENTERTAINMENT LTD - ACCUMULATE


Shemaroo Entertainment is relatively a newly listed company in Indian stock exchanges . Company came out with an IPO in last September and issued its shares at a price of Rs.170 . This Mumbai based company is the largest media content synicator in India and own the rights of about 3000 movies ,mainly Hindi and also some regional language movies .Company acquiring contents from its original producers and monetize the same by re-selling it to different media platforms.Shemaroo acquiring its movie rights in two different models - perpetual or aggregated. Perpetual Rights means  the rights to distribute content worldwide for an  unlimited  period across all media. Aggregation method means ,the rights are restricted for fixed period, platforms, or  geography . Company selling these contents to both conventional media platforms like TV Channels , Cable TV Networks..etc and new generation media platforms like Mobile ,Internet..etc. At present , major portion of income is coming from Conventional platforms ,  but the growth rate is far better in new media platforms.For the last nine months growth rate in Conventional platform was 9 % where it was above 40 % in new media segment. This same trend is expected in future too. Government’s and Telecom companies'  efforts to expand the infrastructure for broadband and introduction of modern technologies like 4G ..etc are expected to sharply increase the  Internet penetration in India in the coming quarters . Number of mobile Internet users are expected to grow exponentially in India in the coming years .Such a situation may help the company to achieve faster growth in its media syndication business through new gen platforms like mobile phone and Internet. Recently company tied  up as an official channel partner for You Tube where it is managing more than 30 channels. It is also providing content management services to partners including Reliance Communications Re1 WAP store, and Airtel digital television for an interactive devotional service -iDarshan.
                                                                                          For the nine months ended December 2014 , company reported a top line of Rs.238 Cr and a net profit of Rs.28 Cr . It is expected to complete FY 2014-15 with an EPS of Rs.18 .At the time of IPO , company had a debt of over Rs.100 Cr . It raised Rs.120 Cr through IPO and so far utilised an amount of Rs.40 Cr ( approx) for working capital requirements .An amount of Rs.70 Cr still invested in mutual funds and liquid securities . As per December quarter share holding Promoters are holding about 66 % stake in this company.Recently JP Morgan Chase’s offshore subsidiary  Copthall Mauritius Investment Ltd acquired 4.5 lakhs shares from open market @ Rs.230.Promoters very good relation with major film producers and their more than 30 year experience in this business giving indisputable leadership position for Shemaroo in media content syndication industry .Considering the huge  growth potential of new-gen media going forward , I believe , Shemaroo can improve its already dominant position in this industry. Stock is currently trading around Rs.208 .considering the present  high volatile market situation , suggesting to accumulate it in a staggered manner with a long term view. Stock is listed in both exchanges.

Link to Company Website HERE

Link to latest Investor Presentation HERE 

Disc: It is safe to assume that I have vested interest in Shemaroo 

104 comments :

  1. Good morning sir. I m chetan ur silent follower. I just wanted to know whether todays announcement in il&fs eng that they hv alloted shares on preferential bases at 60 re is bad for long term or not. I m genuene long term investor invested heavily in this counter . Thank u

    ReplyDelete
    Replies
    1. How promoter increasing stake in a company become negative ?

      This is for the redemption of redeemable preference shares due for redemption on 25 March , which I clearly indicated in my posting itself.

      Delete
  2. Thanks for quick reply sir.appreciate ur commitment. I was just worrying ABT price issue I.e 60 rs

    ReplyDelete
    Replies
    1. Price fixed based on SEBI formula . When they initiated the process to issue these shares , price was around Rs.60 .

      Delete
  3. Sir,

    Shemaroo: How to do you high receivables position impacting the fund requirements for growth in future? It's an industry wise situation, though your valuable insights would assist.

    ReplyDelete
    Replies
    1. Yes, that is the general situation of the industry as a whole .As you are aware, due to bad situation of our economy advertisement revenue of TV channels were not robust in past few years and it is one major reason for high receivables . I hope ,the situation will improve going forward.

      Delete
  4. Wouldn't Eros International or Saregama be a better pick in the media segment due to valuations and better market position?

    ReplyDelete
    Replies
    1. Eros International is a stock I recommended earlier @ Rs.190 ( http://value-picks.blogspot.in/2010/10/eros-international-media-ltd-buy.html) which is currently trading around Rs.430 . Business of Eros( mainly film production and distribution) is riskier than the content syndication business of Shemaroo. Considering the current market prices of Eros and Shemaroo vis-a-vis the risk of business , I believe there is more left in the table in case of Shemaroo.

      Though the potential of business in Saregama is good , management is not showing enough smartness to tap the available opportunities.

      Delete
  5. Shemaroo doesn't seem to be a multibagger stock though i can give 20-30% returns in medium to long term... Its business prospects are not convincing enough and it does not have a potential to become multibagger...

    ReplyDelete
    Replies
    1. Don't think each and every listed stock will become multibagger and no meaning in believing one should invest money only in stocks to become multibaggers.To create a balanced portfolio , there should be stocks with different risk reward profile, otherwise the impact will be horrible once the market mood change. In any portfolio some stocks will turn as multibaggers , some will give reasonable return and some will return loss . This is part of this game and we should realize it before coming to stock market . If we are investing in stock market with an expectation of 100 % success , we may not satisfied every time . Smartness is where we can commit minimum mistakes.

      Delete
    2. Very good explanation for Balanced Portfolio.

      It is the basic fact and must to know before entering stock market. We have to realize as early as possible about this fact.

      Delete
    3. If the management does the right things, Shemaroo will be multi-multi bagger. The potential for aggregate market is unlimited in India as it is emerging business segment. I'm going to take a minimum 5 plus years view unless the management does something stupid.

      Delete
  6. Dear VP Sir, please share your views on HCL Info & Global Vectra Helicorp.. Whether both these stocks have bright future prospects??

    ReplyDelete
    Replies
    1. Sorry , not strictly tracking both cos.

      Delete
  7. Dear Sir,
    Share ur view on INFOEDGE and GSFC

    ReplyDelete
    Replies
    1. Lot of value unlocking opportunities are there in Info Edge , If the management is willing . Not tracking GSFC

      Delete
  8. Thank you sir, one more nice pick from you.I sincerely follow your picks n invest ...substantial. Sir, I need your views on Hitech PLAST Ltd. If u give me green then I m planning to invest 4 long term.

    ReplyDelete
    Replies
    1. I prefer Mold Tek pack from this space.

      Delete
    2. Sir, any idea about mold tek Technologies? Please publish this and share your valuable view

      Delete
  9. Replies
    1. Archies's current major business is outdated . Future depends on their ability to develop their e-commerce business for which they are trying

      Delete
  10. Nagative point you never show in public..my comment on your previous loss not reveal in public..hind tin aimco polyphlex. .

    ReplyDelete
    Replies
    1. Could not understand what do you mean by negative point. If you are referring the stock prices currently trading below suggested price , I have only one thing to tell - I am not a super human for 100 % accuracy .If you know some one with 100% strike rate in stock market , please reveal the name which will help all readers to follow him and benefit .Some stocks quoting below recommended price and your comment is not necessary to reveal that and the same publishing periodically even without anyone's suggestion or comment . You can see the same in the following link ( For the entire stocks suggested from 2010-2014) )

      http://value-picks.blogspot.in/2015/01/the-score-card-2010-2014_1.html

      It is practically difficult to publish like that on everyday according to each days price movement.

      I am not able to guarantee 100% gain in each and every stock and in some cases may request to sell below the purchased price , if there is solid reason for that .

      Delete
    2. Sir, please do not waste time and energy on such queries. Time and again you have posted and clarified on the same.

      If somebody decides that he wants super profits delivered to his door step, in quick time and always, consistently..!! , ... can you really satisfy such queries! Better ignore

      Delete
    3. Sauri please wear a long term hat. Don't be a trader and expect profit overnight. In fact if price falls below your buying price and your conviction is high then you should be accumulating it.
      VP Sir you are doing a fantastic jobs.I honestly wouldn't have found the companies you discovered. Thanks once again and please continue the fantastic work.

      Delete
  11. Sir please excel crop hold or sell

    ReplyDelete
    Replies
    1. Sorry not tracking Excel Crop care and never suggested this stock.

      Delete
    2. Sir, keep us updated if you change your view about excel industries.

      Delete
  12. Sir,your view on capital trust at current price? I missed it when you recommended earlier.

    ReplyDelete
    Replies
    1. Stock already gained about 100% from suggested level .Neutral at CMP

      Delete
  13. sir ur view on TFCI ,Dishtv,carrer point for long term

    ReplyDelete
    Replies
    1. Dis TV may turn around in another few quarters. Not tracking others

      Delete
  14. sir can i accumulate more in orchid and lincolin pharma at cmp thanks

    ReplyDelete
    Replies
    1. Lincoln is a very high risk kind stock and not interested to suggest it for average risk takers .

      I hope Orchid can come back in another two years.

      Delete
  15. Dear valuepick!! Hope you are in fine nick! I would like to know your views on Dynamatic technology and Nucleus software. Some analysts are of the view post disclosure of Airbus deal that Dynamatic may be a multibagger over next 4-5 years like Richer motors/Page industries.

    About Nucleus I invested about 2 years back considering its product development potential, after reading in a business mag but is in loss since. Kindly offer your views on both. Warm regards!!

    ReplyDelete
    Replies
    1. Dynamatic Tech already turned a mult bagger in last one year and still some more steam left

      Not tracking Nucleus.

      Delete
  16. Whats wrong with Aimco? I don't see any negative news or any drop in buisness ..

    ReplyDelete
    Replies
    1. Aimco Pesticides suggested @ Rs.44.75 currently trading around Rs.57 . Company's plans to expand equity may be a reason for sideways movement . But for long term investors , the funds company planning to raise may bring more growth in business.

      Delete
  17. Hi VP Sir,
    Need your advice on entering Amines & Plasticizers after stock split.

    ReplyDelete
    Replies
    1. In my posting itself I mentioned about stock split

      Delete
  18. Could you please share your current views on KERALA AURVIDIC and future outlook again? I AM buy your recommendation few years back and add more shares every year. I AM LONG TERM INVESTER WAITING ANOTHER 3 YEARS

    TQ SIR

    ReplyDelete
  19. Sir
    I am Santhosh What about gitanjali gems

    ReplyDelete
    Replies
    1. Expected some relief for gold import in last budget , but not happened.

      Delete
  20. Sir, please provide your view on Multibase.. Whether one can book profit here or continue to hold... Expecting your valuable advice.. It has already become a multibagger from your recommended level.. Thanks.. Awaiting your response soon..

    ReplyDelete
    Replies
    1. If you are a low risk taker , take out your capital and hold rest

      Delete
  21. dear VP,
    Please share your opinion on your earlier recommendation Wockheardt.

    regards

    dainy

    ReplyDelete
  22. Sir, your view about indo borax and chemical which is listed in bse, last 5 years CAGR more than 20% and this Fy eps is more than 50 still it is available at 260. NPM is more than 15 %

    ReplyDelete
  23. Sir do u track oricon enterprise? If yes request ur opinion about this company

    ReplyDelete
    Replies
    1. Sorry , Not tracking above two stocks

      Delete
  24. Dear sir
    It is very difficult for me to understand what good stocks without band bad news in business and gods progressive approach are not performing in this scenario.. Like
    1.Excel
    2.capital plus
    3.Crompton Greeves
    4.moldtek pack
    5.Jain irrigation

    Regards
    Upendra bhardwaj.

    ReplyDelete
    Replies
    1. Different Scenarios are part of market . Up move , correction , consolidation..etc will be there. Conviction to hold during such tough times creating winners in stock market . To get such conviction , one need to spend more time to study about companies and their business rather than spending full time in front of trading terminal to look into each minutes price movement. Sometimes inactivity is the most important factor creating successful investors.

      Delete
  25. Sir your current views on Glenmark Pharmaceuricals and Ashapura Minechem if you are tracking them please.

    Thanks and Warm Regards

    ReplyDelete
    Replies
    1. Both are good though the risk levels are different

      Delete
  26. Your blog is now turning a failure because when you get stubborn and are unwilling to accommodate to any meaningful suggestions you get such results. I had requested you to recommend stocks during market hours so that genuine investors like me can buy but now all genuine investors like me have moved away from your blog and you are left with only punters ( or your so called followers). But they didn't come & buy today nor are they buying last so many recos, but you want to do welfare for them because they help you in price rigging. I hope the message is loud & clear and you understand your mistakes rather giving me arrogant answers. Kindly take these words in positive way. We have gained so much from you but now cannot see such hammering of your stocks.

    ReplyDelete
    Replies
    1. Sir i think Mr KP is a trader he was expecting UC to day in this counter ...small and long term investors like me don't expect UC on the suggested day ...
      Mr KP loaded a truck full of Shemaroo Entertainment and waited for continuous UC ..
      Slow and study wins the race..Dear VP pls dont reply to this punter/Trader...

      Delete
    2. Its a Thankless biz and specially when market corrects all the so called "long term investors" come out. When market goes up that time all become long term investors :)

      What a statement "that genuine investors like me". If you are genuine then why not buy in this correction and why you need VP sir recos to buy? Do research on your own and no one has asked you to be here.

      See other questions raised on stocks BUY/comments before you. Few stocks already mentioned liked Mold Tek Pack that he prefers that in this thread only, still people same question as they need "their questions" answered.

      No wonder we don't learn, we just want to make money and not learn. Thats the reason we suffer and are always a follower mentality.

      Very shameful, KP and other people raising such query.

      Delete
    3. patience pays, you can not always earn from market. Keep patience, keep faith in yourself. No gain without Pain.

      "kuch pane ke liye, kuch khona padata he"

      Delete
    4. Getting result is not the prime purpose this blog. It is just to express my personal views. Stock price will move according to the business growth of each company . If you are a genuine investor you will buy stocks only after studying the company properly which need enough time .How you can do that if I publish it during market hours ? .Initially I posted here during market hours and because of the repeated requests of readers it changed to off day.

      Delete
    5. KP sir i don't think publishing reccomondation during market hours or off market make any sense to genuine long term investors .I ur conviction is strong in the stock short term fluctuations dont make sense......During market hours reco. u will only get heavy fluctuations

      Delete
  27. Respected sir your views on gujrat nre future. Seems an investment opportunity to me, your views pls

    ReplyDelete
    Replies
    1. Not sure about its promoter quality, hence no comments :)

      Delete
  28. Sir,

    Invested in ILFS@105 . is it right time to average? thanks

    ReplyDelete
    Replies
    1. No negative change happened in this company's fundamentals in last 15-20 days , post recommendation.

      Delete
  29. Dear VP,

    What ahout your old recommendation - Indsil Hydro (april 2010). It is trading around rd 43. can I accumulate this counter? Thank you sir.

    ReplyDelete
    Replies
    1. Yes @ Rs 43 now , but there was a bonus in between . Its future depends on steel industry

      Delete
  30. KP, Earlier it was easy as market moved from 5200 to 9000 in one year so market itself doubled. Now market is taking well deserved breather for next move. It is unfair to expect rocket if market itself is not doing anything. His recommendations are for long term so any fall could be used to buy more (If convinced). We need to be patient. Also he is not forcing you to buy anything. If you like go ahead and buy else just enjoy the fun....

    ReplyDelete
  31. KP, Earlier it was easy as market moved from 5200 to 9000 in one year so market itself doubled. Now market is taking well deserved breather for next move. It is unfair to expect rocket if market itself is not doing anything. His recommendations are for long term so any fall could be used to buy more (If convinced). We need to be patient. Also he is not forcing you to buy anything. If you like go ahead and buy else just enjoy the fun....

    ReplyDelete
    Replies
    1. The sad part is Polyplex and Hind Tin are the two stocks about I replied most after December quarter result .

      Delete
  32. Sir your view on prima plastic,waterbase,control print and KSE.. KSE management seems to be very very good! Your perception on above stocks?

    ReplyDelete
  33. Hello VP,
    do you track KPIT Tech? If so, could you please share your views?

    ReplyDelete
  34. Dear VP,
    Is it good to book partial profit in Panasonic Energy. Entered at 77

    ReplyDelete
  35. sir ,
    i am very much impressed from your knowledge, vision & experience.
    i want your valuable advise in paushak, nile & veljan that what to do at this stage. i am holding all these scripts as per your recomendation

    ReplyDelete
    Replies
    1. All these stocks are already recommended at lower rate and not recommending for fresh buy at CMP

      Delete
  36. Hi.
    I need ur value suggestions on :
    1. Suven life science
    2. Everady
    3. Dabur
    4. Morepen lab

    Note: i have already healthy investment on Suven. Pls dont feel bad that i m askibg without any homework. I explored ma level best. But i wish to confirm with u . Pls guide


    Thanks for the Blog

    ReplyDelete
    Replies
    1. Only stock I am tracking from this list is Dabur and one can HOLD it

      Delete
  37. Sir, would appreciate your views on Garware Wall ropes, Wonderla and IPCA labs.

    Thanks

    ReplyDelete
    Replies
    1. Not tracking Garware wall ropes

      Wonderla and IPCA are suitable for long term Investment.

      Delete
  38. Hello VP sir,
    Sir your view on
    1. IL& FS Investment Managers
    2. JVL Agro Industries
    3.Genus Power Infrastructure

    ReplyDelete
    Replies
    1. Not tracking first two .

      Genus is a stock suggested before stock split , as of now not tracking it

      Delete
  39. VP sir,

    Not sure if you track Nasdaq listed stocks. If you have any view on below stocks, do let me know sir.

    nasdaq: GOOG
    nasdaq: LNKD
    nasdaq: AKAM

    Have few shares in two of these mainly got through employee benefits.
    Thank you sir.

    ReplyDelete
    Replies
    1. I think there is enough in Indian market itself :)

      Not tracking US Companies

      Delete
  40. Dear VP sir,
    Your view on MT educare currently trading at 112/- per share. I have purchased at 140/- per share,though it was not ur recommendation.

    ReplyDelete
  41. Dear VP sir

    Pls suggest in off market itself...at least it we will take little step to study about the company... If u give during market hours surely all will jump into tat company and will blame u only when price falls.

    ReplyDelete
  42. Is cheviot worth buying .prom.hold. 75% dig.last three year 150% contiously. 50 rs EPs . is this have to worth for suggestion by your side.

    ReplyDelete
  43. Your recommendation 'Astec Lifescience' @ 57 is near all time highs, currently @ 156. Though it took some time for price movement, it is worth the patience wait.

    Similarly, I urge readers to have patience for Hind Tin & Polyplex. If there is anything negative, VP will surely give us a exit advice like he did in case of Suzlon and few others. If you trust, trust fully and follow, else exit, book loss and not follow.

    My 2 cents...

    ReplyDelete
  44. Dear sir,
    This is regarding the "Eon Electric" suggested earlier.
    Earlier, News from the public domain cited that the Eon will going to
    expand Haridwar unit to serve the growing needs of Mobile batteries.

    http://articles.economictimes.indiatimes.com/2013-12-08/news/44942812_1_eon-electric-march-2015-lamps

    Recently, there is no update from the company about progress
    of the work. Do you have any information about the recent development?

    Regards
    Land of innovation

    ReplyDelete
    Replies
    1. Dear I think you are a share holder of this company . Did you try to contact directly with company and sought a clarification in this matter ?

      Delete
  45. Hi VP, Pl let me know prospects of Peacock Industries and Somi Conveyor .

    ReplyDelete
  46. Dear VP,
    What are your views on ORIENT PAPER & INDUSTRIES LTD....do you think it has got good fundamentals ?

    Thanks.
    Ramesh

    ReplyDelete
  47. sir,

    kindly express your views on GULSHAN POLYOLS
    Thanks

    ReplyDelete
  48. Bought shemaroo on 214, now 185, shall I wait more or accumulate more now ?

    ReplyDelete
  49. Sir,
    Bought these shares after reading the post @ 220.
    Now it has come to rs.170.
    So, Should I wait or sell it?
    Any padding from you to buy these now ???

    ReplyDelete
  50. Sir,your view on multibase? I see a great future coming.. with improving macro economic situation of country and still 60% of indias population dont have car and those u have.. among them only 25% cars have air bags? Its into manufacturing of airbag.. your views? Do you see it expensive at this rate? Because it have already give. Long runup!

    ReplyDelete
  51. Sir I am new into share market so could you please suggest me some shares for investment purpose. Please let me know sir.

    ReplyDelete

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