X

Eros International Media Ltd Stock Analysis

Small Cap
Evaluated by 2324 users | BSE: 533261 | NSE: EROSMEDIA |
Film Production, Distribution & Entertainment
Eros International Media was incorporated as a private limited company under the name Rishima International Private Limited on August 19, 1994 and got its present name on November 20, 2008. The company is a part of the Eros Group., which has an extensive film library and is in the...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
Eros International Media Ltd has not performed well majority of the past ten years indicating its past ten year financial track record is not good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 17.25%14.16%12.71%14.92%15.63%13.05%12.79%10.63%10.55%-54.53%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 7079441,0681,1351,4211,5831,4009601,031814
Y-o-Y Gr. Rt.-33.5%13.1%6.3%25.3%11.4%-11.6%-31.4%7.4%-21.1%
Adjusted EPS (Rs.) 12.3115.6217.0221.7927.5625.8628.2725.2327.88-147.45
Y-o-Y Gr. Rt.-26.9%9%28%26.5%-6.2%9.3%-10.8%10.5%-628.9%
Book Value per Share (Rs.) 72.7490.77106.9130.78159.21184.65211.25234.52267.9129.04
Adjusted Net Profit 113143156200255242265240266-1,410
Net Op. Cash Flow (Rs. Cr.) 4274066488729331,17023523540250.8
Debt to Cash Flow from Ops 0.641.10.620.50.530.312.772.931.4710.8
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
Eros International Media Ltd. should be analysed on a Consolidated basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 1.6%-10.6%-16.5%-21.1%
Adjusted EPS -231.8%-239.9%-273.4%-628.9%
Book Value per Share 6.6-4.1-15.2-51.8
Share Price -21.2% -34.4% -49.8% 6.7%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 24.7919.0417.1818.2618.951514.1311.2711.06-73.86
Operating Profit Margin (%) 22.1923.0521.7426.5125.5620.6125.1565.7657.4717.5
Net Profit Margin (%) 16.0615.3114.7717.117.9415.5117.9425.1525.56-172.82
Debt to Equity 0.410.540.410.360.330.210.330.310.230.44
Working Capital Days 337289205129164164173318399624
Cash Conversion Cycle -381-63-127-261-78315928
Corporate Governance What do we look at?
Corporate Governance
Board Credentials
Promoter's holding
Transparency
Integrity
Entity Percentage Holding
Promoters 62.24%
Institutions 8.26%
Non-Institutions 29.50%
Pledged *61.6255.6347.7447.7447.7461.6361.6361.6361.6361.63
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of Eros International Media Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that Eros International Media Ltd is a below average quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of Eros International Media Ltd's performance infers:

Eros International Media Ltd earnings have declined by -239.9%, whereas share price has depreciated -34.4% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of Eros International Media Ltd share prices over the last 10 years. Here is what we found out:

Eros International Media Ltd share price has depreciated -17.1% annually over the past ten years.

Eros International Media was incorporated as a private limited company under the name Rishima International Private Limited on August 19, 1994 and got its present name on November 20, 2008. The company is a part of the Eros Group., which has an extensive film library and is in the business of sourcing Indian and other film content and exploiting it worldwide through its offices in India, UK, USA, UAE, Singapore, Australia, the Isle of Man and Fiji across formats such as theatres, home

Eros International Media was incorporated as a private limited company under the name Rishima International Private Limited on August 19, 1994 and got its present name on November 20, 2008. The company is a part of the Eros Group., which has an extensive film library and is in the business of sourcing Indian and other film content and exploiting it worldwide through its offices in India, UK, USA, UAE, Singapore, Australia, the Isle of Man and Fiji across formats such as theatres, home entertainment, television and digital new media.

The international rights for distribution of Indian film content for the entire world excluding India, Nepal and Bhutan are licensed to the Eros International Group in accordance with the terms of the Relationship Agreement with effect from October 1, 2009 between the company and its Promoters, Eros Worldwide and Eros plc. The company was incorporated to carry on, in all parts of the world, the business of exhibiting, distributing and otherwise exploiting cinematograph and television films and motion pictures of all kinds, including advertisement commercial films.

Eros International sources all Indian film content for the Eros Group and exploits such content across formats within India, Nepal and Bhutan. It has various rights to over 1,000 films which include Hindi, Tamil and other regional language films, including films such as Mughal-e-Azam, Om Shanti Om, Lage Raho Munnabhai and Love Aaj Kal, which it considers to be a key competitive advantage and an integral part of its business model. It also owns rights to certain English language films for home entertainment distribution within India. The Hindi, Tamil, other regional and English language films together form the Eros India Library.

The company sources content primarily through acquisitions from third parties and through co-productions and, occasionally, through its own productions. It mainly acquire films from third party producers at various stages of a film‘s production for an agreed contractual value, and also co-produce films from inception with certain producers for a pre-agreed fixed budget.

Eros International so far has only a single own production to date, namely Aa Dekhen Zara as it relies more on acquisitions and co-productions to source content. The company exploits and distribute end-to-end Indian film content within India, Nepal and Bhutan through multiple formats such as theatres, home entertainment, principally in the form of DVDs, VCDs and audio CDs, and television syndication, which primarily involves licensing the broadcasting rights to major satellite television broadcasting channels, cable television channels and terrestrial television channels. It also exploits and distributes content via digital new media such as mobile ring tones, wallpapers and download, IPTV, DTH and other internet channels and we also license films to airlines for in-flight viewing.

Subsidiaries:

  • Eros International Films Private
  • Copsale
  • Big Screen Entertainment Private
  • EyeQube Studios Private
  • Eros Music Publishing Private
  • Eros Animation Private
  • Ayngaran International
  • Ayngaran International (UK)
  • Ayngaran International (Mauritius)
  • Ayngaran International Media Private
  • Ayngaran Anak Media Private

History of the Company:

  • 1994 - Incorporation of the company and subsidiary of Eros International Films
  • 1999 - Acquired business and assets of Jupiter Enterprises. Commenced selling home entertainment, for instance VCDs and DVDs
  • 2005 - Release the first co-produced film, Waqt
  • 2006 - First India theatrical release and music distribution of the film Omkara. Launch of the Eros Music label
  • 2007 - Set up VFX operations under the Subsidiary EyeQube. Entered into a shareholder‘s agreement for acquisition of 64% in Big Screen Entertainment.
  • 2008 - Entry into Tamil film industry pursuant to the assignment of the Ayngaran SHA to Copsale, by Eros plc. Incorporation of the  Subsidiary Eros Music Publishing for signing lyricists and composers. Joint venture agreement with Universal Music India for talent management. India theatrical distribution expansion through offices in Mumbai and Delhi. First release on Blu-Ray high-definition disc format, Heyy Babyy, followed by Om Shanti Om.
  • 2009 - India theatrical distribution expansion through offices in Punjab and exclusive arrangement for West Bengal. Execution of Settlement Agreements with various film exhibitors. Conversion to a public limited company
  • 2012
    -Eros International acquires international rights of TEZZ.
    -Eros International alings with Vinod Chopra Films for Ferrari ki Sawaari Film to release worldwide on June 15, 2012.
    -Eros International ties up with HBO Asia to launch 2 movie channels.
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

Callback