Hi all,
This is a good stock both short-term and long term.
Short-term Reasons:
1)Greenland (An eros-stx) movie is releasing in Indian theatres on 4th December.
2)Number of paid subscribers has Increased from 33 million on 30th June 2020 to 36.2 million, A healthy 10% growth rate Q/Q.
3)Release of various original series can be anticipated in the next 3 months.
4)The production branch of the company can resume shooting as lockdown restrictions are lowered.
Long-Term (3-5 years)
1)Owns about 95% of the content rights for most of its content about 12000 movies and tv shows with a conservative estimate of INR 7400 crore. After the merger, the content of STX films like Greenland, Bad moms, Hustlers, and many more are also part of its content.
2)Strategic partnership with Microsoft, Apple, Google among others to distribute its content.
3)A pipeline of original tv shows and movies are being developed with some of the stars attached thus far Including Angelina Jolie, Cristopher Waltz in "Every Note Played", Claire Foy of The Crown fame in "My Son', Selena Gomez in "Dollhouse" and many more. All of these projects will be released in India in theatres or on Eros now.
4)Introduction of premium English content on eros now platform including stx films, new content, and partnership with the content provider such as NBC. This will allow the OTT platform ErosNow's growth commanding higher subs and subscription rates.
5)Massive growth opportunities in Tier II and Tier III markets where competition is relatively low.
Management:
The management is experienced, with a past record of delivering successful projects as producer, distributor and content creator for multiple markets cutting across languages, cultures, and traditions.
The management is keeping a watchful eye on finances while expanding carefully into long term growth areas.
Finances:
Have a look at the past 3 quarters of eros media results and you will notice that the bottom line is improving. At this pace, the company will break even and post a profit in the next 6-9 months at the most.
The company has a healthy balance sheet with low debt as compared to assets and ample cash.
Lastly, I would like to note that the company is going through a massive transition from a traditional production house to a dynamic distributor and content creator with a focus on its OTT platform done in a way that has a humongous upside.
To those who plan to invest in this stock or any stock for that matter, my humble advice is to stay in your circle of competence. Invest in those businesses which you can relate to or understand on some level whether as a consumer, professional, or businessperson.
This is a good stock both short-term and long term.
Short-term Reasons:
1)Greenland (An eros-stx) movie is releasing in Indian theatres on 4th December.
2)Number of paid subscribers has Increased from 33 million on 30th June 2020 to 36.2 million, A healthy 10% growth rate Q/Q.
3)Release of various original series can be anticipated in the next 3 months.
4)The production branch of the company can resume shooting as lockdown restrictions are lowered.
Long-Term (3-5 years)
1)Owns about 95% of the content rights for most of its content about 12000 movies and tv shows with a conservative estimate of INR 7400 crore. After the merger, the content of STX films like Greenland, Bad moms, Hustlers, and many more are also part of its content.
2)Strategic partnership with Microsoft, Apple, Google among others to distribute its content.
3)A pipeline of original tv shows and movies are being developed with some of the stars attached thus far Including Angelina Jolie, Cristopher Waltz in "Every Note Played", Claire Foy of The Crown fame in "My Son', Selena Gomez in "Dollhouse" and many more. All of these projects will be released in India in theatres or on Eros now.
4)Introduction of premium English content on eros now platform including stx films, new content, and partnership with the content provider such as NBC. This will allow the OTT platform ErosNow's growth commanding higher subs and subscription rates.
5)Massive growth opportunities in Tier II and Tier III markets where competition is relatively low.
Management:
The management is experienced, with a past record of delivering successful projects as producer, distributor and content creator for multiple markets cutting across languages, cultures, and traditions.
The management is keeping a watchful eye on finances while expanding carefully into long term growth areas.
Finances:
Have a look at the past 3 quarters of eros media results and you will notice that the bottom line is improving. At this pace, the company will break even and post a profit in the next 6-9 months at the most.
The company has a healthy balance sheet with low debt as compared to assets and ample cash.
Lastly, I would like to note that the company is going through a massive transition from a traditional production house to a dynamic distributor and content creator with a focus on its OTT platform done in a way that has a humongous upside.
To those who plan to invest in this stock or any stock for that matter, my humble advice is to stay in your circle of competence. Invest in those businesses which you can relate to or understand on some level whether as a consumer, professional, or businessperson.
