We believe that despite the recent stock price crash, Eros International continues to remain strong and the company has clarified that its film slate for next two years is fully funded. After a 51 per cent EPS increase in 1H, we believe it is poised for a strong 2H supported by the release of big movies, such as ‘Bajirao Mastani’, ‘Dictator’, ‘Sardar Gabar Singh’ and ‘24’.
Moreover, its FY17 pipeline is quite solid in both Hindi and regional films, and we have not factored in the 3-4 movies that its 100 per cent unit ‘Trinity Pictures’ is likely to release, including two Indo-Chinese movies. Finalization of fee sharing with Eros Now will be another catalyst for Eros International India in FY17.
Eros’ stock mirrored the capitulation in its parent’s stock price in the past 40 days. We believe this extraordinary phase is over as the company clarified rumours versus reality on its receivables, film count, and Eros Now users.
No comments:
Post a Comment