For updates visit


Indian Stock Market


Buy UTV Software: Prabhudas Lilladher

Wednesday, July 4, 2007

The company expects the movie business segment to report revenues in the range of USD 50-55 million for FY08 with EBITDA margins close to 30% for the segment. Based on the performance of the recent movie releases and guidance provided by the company, we have revised upwards our estimates for UTV Software. We expect UTV to report earnings of Rs 309 million in FY08, Rs42 million in FY09, and Rs 868 million in FY10, to grow at a CAGR of 98% over next three years. At current market price of Rs 526, UTV Software is trading at a price to earnings of 13.9x FY10 estimates. We maintain a BUY recommendation on the stock.

Strong growth ahead

The company expects the movie business segment to report revenues in the range of USD 50-55 million for FY08 with EBITDA margins close to 30% for the segment. With robust slate of movies in pipeline UTV expects its movie revenues to double in FY09 as compare to FY08. Based on the performance of the recent movie releases and guidance provided by the company, we have revised upwards our estimates for UTV Software. The graph below depicts our expectation on UTV’s movie business and EBITDA margins for the similar period.

Earnings outlook and valuation

We expect UTV to report earnings of Rs 309 million in FY08, Rs 42 million in FY09, and Rs 868 million in FY10, to grow at a CAGR of 98% over next three years. At current market price of Rs 526, UTV Software is trading at a price to earnings of 13.9x FY10 estimates. We maintain a BUY recommendation on the stock.

Posted by FR at 5:20 AM  

Catagories , ,

0 comments:

Post a Comment

Subscribe to: Post Comments (Atom)

IMPORTANT DISCLAIMER

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 we consider reliable. I, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and I 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 given in this blog.