10000 to 4crs in 18 months 1000rs to 50crs 300% returns 75% promoter holdings A 50 bagger A sureshot 5 bagger Analysis Another fraud? Auto ancillaries Bank sector Blind sell Brand plays Broking Bse Nse Buy calls cements Ceramics/tiles Counters I don't like Debt free businesses Delisting candidates demerger bets Disclosure- I own them Domestic consumption plays E-Commerce pick Education Exit at rallies Famous analysts Famous stocks FMCG Footwear future multibaggers Gems andJewellery Hidden gems High conviction ideas High dividend plays High potential small caps High ROE stocks Holding companies Hotel sector How they looted you.. Indian stock market Infrastructure sector Interesting Microcaps IT KPO Landbank plays largecap ideas Less than 5 PE stocks Liquor Logistics Market lessons Market outlook for 2013 and 2014 Market underperformers Meeting with the CEO Metals Monopoly businesses My 5 baggers My Favourite counters My paid stock recommendations My stock picking techniques nse bse tips Oil exploration Operator calls Paints Penny stock outlook penny stock updates Pharma sector Poultry stocks PSU Publicity freaks Real estate Renewable energy plays Safe bets Sell recommendations Share market Live shipping stocks short term call SOTP plays stock tips stock under 10rs Stocks to watch out for Strong bonus candidates Takeover candidates TATA product tea Textiles The 13 bagger The 45 bagger Trading companies Transformers Turnaround bets Tyres Uncertain/Risky business models Unique businesses

Search This Blog(Over 800 companies covered in the blog).

Archives : Old artciles

Friday, November 6, 2009

Fame India Ltd:Future growth outlook and prospects,buy/hold/sell

Scripscan:Fame India Ltd

Story:Fame India Limited Formerly known as Shringar Cinemas Limited. The Group's principal activities are to distribute films, exhibit films and operate through a chain of multiplexes. It operates in three segments: Theatrical , Distribution and Others. The Other segment includes programming and management contracts. For 2QFY2010, Fame India reported a muted Top-line growth of 15.3% yoy to Rs 35.6 crore (Rs 30.9cr), on a standalone basis, partially impacted by the Swine flu scare, coupled with limited movie releases, due to Shradh and Ramazan falling in this quarter. Hence, occupancy dropped yoy to 23% (29%). Further, a flattish ATP growth of 0.8% to Rs 128 (Rs127) aggravated the woes of the company. However, higher revenues from the sale of F&B and advertisement, which increased by approximately 25% to Rs 8.5cr (Rs6.8cr) and to Rs 2.8 crore (Rs 2.3 crore), respectively, backed by a 12.1% yoy increase in footfalls to 2.3mn (2.1mn), on account of four property additions this quarter, helped the company in registering a muted growth of 11.3% in Ticket sales to Rs23.9cr (Rs 21.4 crore).At the CMP of Rs 29, Fame India is trading at expensive valuations of 58x its FY2011E revised EPS of Rs 0.6, largely driven by news-flow on a possible change in ownership. Nonetheless, our interaction with the management suggests that the promoters are not interested in selling out. While we expect Fame to recover at the operational level in FY2011E, we believe that the higher depreciation and interest costs will keep the Bottom-line under check. Hence, we downgrade the stock to Sell, with a Target Price of Rs 23 (based on 1x P/BV FY2011E). Upside risks to our estimates include, 1) Announcements on FCCB buyback (likely at a discount), and 2) clarity over the recent share acquisition from the open market.

Important Disclaimer&Privacy policy

This blog does not share personal information with third parties nor do we store any information about your visit to this blog other than to analyze and optimize your content and reading experience through the use of cookies.You can turn off the use of cookies at anytime by changing your specific browser settings.This privacy policy is subject to change without notice and was last updated on 20.3.2013. If you have any questions, feel free to contact me directly here: Investment in equity shares has its own risks.Sincere efforts have been made to present the right investment perspective.The information contained herein is based on analysis and up on sources that I consider reliable. I,however,do not vouch for the accuracy or the completeness thereof.This material is for personal information and am not responsible for any loss incurred based upon it & take no responsibility whatsoever for any financial profits or loss which may arise from the recommendations above.The stock price projections shown are not necessarily indicative of future price performance.The information herein, together with all estimates and forecasts, can change without notice.

Subscription to Arunthestocksguru

Enter your email address:

Delivered by FeedBurner