UFO Moviez India _IPO Note_28042015.pmd

Transcription

IPO Note
UFO Moviez India Ltd.
April 28, 2015
Issue Details
Reco: AVOID
IPO Details
Issue Opens
Issue Closed
BRLM
Registrar to Issue
Face Value
Offer Size (mn equity shares)
No. of o/s Shares (Pre Issue)
No. of o/s Shares (Post Issue)
Bid Lot
Issue Price (Rs / share)
Issue Size (in mn Rs)
UFO Moviez India Ltd (UMIL) is coming out with an initial public offering (IPO) of
9.6 – 9.76 mn shares of face value of Rs 10 each.
28-Apr-15
30-Apr-15
Axis / Citi
Karvy Computershare
10
9.6 - 9.76 mn shares
25.9 mn shares
25.9 mn shares
24 shares
615 - 625
6000
Pre‐Issue Holding Pattern
Promoter Group
Non-Promoter Group
37.77
62.23
Post‐Issue Holding Pattern
Promoter Group
Non-Promoter Group
NA
NA
Allocation (% of Issue Size)
QIBs
Non-Institutional
Retail
50
15
35
Source: RHP, IndiaNivesh Research
Issue price of UMIL will be in the range of Rs 615 – 625 per share, as the company
intends to raise Rs 6000 mn.
Object of the issue is to gain benefit of listing of shares. The issue is an offer for sale
by promoters and private equity investor (3i Research (Mauritius) Ltd and P5 Asia
Holding Investments (Mauritius) Ltd – holding 21.49% and 35.73% of pre-issue
capital). The company will not receive any proceeds from the offer.
Investment Rationale
Indian Film Industry likely to grow at 9.3% CAGR
The Indian film industry earns revenues chiefly from four sources: ticket sales
(domestic as well as overseas), cable and satellite ancillary rights, home video and
in-cinema advertisement. Revenues of the Indian film industry declined by 10 –
11% in 2009 due to weak content pipeline and lower occupancy levels and grew at
a slow pace between 2009 and 2011. Revenue growth picked up in 2012, growing
by 13 – 14% year-on-year on the back of the release of movies such as Agneepath,
Ek tha Tiger and Dabangg 2.
CRISIL research (as per RHP) expects the film industry’s revenues to increase by
9.3% CAGR to Rs 211 billion by 2018, largely comprising domestic theatrical revenues
(65-70%). Over the same period, it expects domestic box office collections to grow
by 9-10% annually, driven primarily by an increase in the number of multiplex
cinemas (where ticket prices are much higher as compared with single or double
screen cinemas), and, to some extent, by the wider (more number of screens) release
of films on account of implementation of digital technology in cinemas. Also, it
expects the Average ticket prices (ATP) (blended for single screens and multiplexes)
to increase to Rs 71 in 2018 from an estimated Rs 44 in 2013. Globally, ATP in the
US was in the range of $7-8 in 2013 (Rs 420-480 at the 2013-14 exchange rates).
With expected improvement in film industry performance and increasing number
of screens in future, digital integrators like UMIL are likely to continue reporting
better performance going forward.
Indian film industry to grow at 9.3% CAGR
250
200
Tel: +91 22 66188826
daljeet.kohli@indianivesh.in
Prerna Jhunjhunwala
Research Analyst
Tel: +91 22 66188848
prerna.jhunjhunwala@indianivesh.in
IndiaNivesh Research
150
Rs Bn
Daljeet S. Kohli
Head of Research
113
108
111
127
135
147
159
174
193
211
100
50
0
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: CRISIL Research, RHP, IndiaNivesh Research
IndiaNivesh Securities Private Limited
601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007. Tel: (022) 66188800
IndiaNivesh Research is also available on Bloomberg INNS, Thomson First Call, Reuters and Factiva INDNIV.
IPO (contd...)
12000
250
10000
200
8000
150
6000
100
4000
Rs. per show
No. of Screens
Rising trend in ATP and number of screens for multiplex
50
2000
0
0
Single Screens
Multiplex Screens
ATP (single screen)
ATP (multiplex screen)
Source: CRISIL Research, RHP, IndiaNivesh Research
Leading player in the digital cinema space in India.
According to CRISIL Research (as per RHP), UMIL has ~ 54% market share in India’s
digital cinema exhibition industry in terms of screens that use digital cinema
distribution networks. Further, In FY13 and FY14, more than 92% and 95% of the
movies certified in respective year were released on the company’s network. Its
digital cinema distribution network has grown to 4911 screens as at 28 February
2015 from 1817 screen in FY10. The company has further established its market
share with its pan-India presence, with a network of sales offices and service centres
with field engineer staff across India, and a dedicated workforce, with in-house
teams for software development, advertisement sales and repairs and maintenance.
The Indian film industry is expected to continue growing despite the growth of
digital entertainment (i.e. entertainment delivered through mobile and the internet),
which would largely be beneficial for UMIL. Its pan-India presence provides with a
wide distributor and exhibitor base and reduces its dependence on any one major
distributor or exhibitor.
Highest market share in digital cinema space
Particulars
Industry
Total Screen
Screens digitised
DCI Compliant Screens
Non-DCI compliant Screens
UMIL
No. of screens
Market Share of Non-DCI Screens (%)
Market Share of Digitised Screens (%)
9500-10000
9200
2100
7100
4911
69.2
53.4
Note: DCI - Digital Cinema Initiative i.e. D Cinema; Non - DCI i.e E-Cinema
Strong business model creating value to all stakeholders
It provides value to movie producers and distributors by reducing distribution costs,
providing reach to a wide network of 4,911 screens across India as at February 28,
2015, providing a faster method of delivery of content, and reducing piracy through
encryption and other security measures. It provides value to movie exhibitors
throughout India by providing access to first day release of movies on its digital
platform. Exhibitors also benefit from sharing a portion of its advertisement revenue,
UFO Moviez India Ltd.|IPO
April 28, 2015 | 2
IPO (contd...)
which enhances their overall revenue and provides them with a source of capital
for improving their cinemas. Audiences benefit from faster access to new movie
releases and a consistently high quality viewing experience. Advertisers benefit from
high levels of transparency, remote capability, and advanced technology. Thus, by
adding value to each participant in cinema industry, it has positioned itself as an
essential player and partner of each participant. This creates stickiness in the business
model of the company thereby resisting players from shifting to competition.
In-cinema advertising – the next growth driver
According to CRISIL Research (as per RHP), in-cinema advertising revenue is likely
to grow at 18-20% CAGR over FY14-FY18 and is likely to play an important role in
the growth of revenues of theatres going forward. This is likely to be on the back of
growth in the number of multiplex screens and improvement in utilisation levels of
advertisement inventory.
The company has a pan-India in-cinema advertising platform with generally longterm advertising rights to 3,770 screens spanning 1800 locations across India as at
October 31, 2014. Its in-cinema advertising platform enables advertisers to reach a
targeted, captive audience with high flexibility and control over the advertising
process, along with high levels of transparency. Given the benefits of the platform,
it has been able to attract 1,056 advertisers from private and government sectors
in fiscal year 2014. The average minutes per screen of advertising for the company
is 3.36 minutes as at 9mFY15, which is far lower than that of multiplex chains. This
signifies the potential for growth in in-cinema advertising. UMIL revenue from
advertisement grew to Rs 999 mn in FY14 from Rs 370 mn in FY12, signifying a
growth of 64.2% CAGR over the period.
Lowest ad revenue per screen provides for potential for growth
Ad Revenues
Ad Revenue
Ad Screens (Rs bn - FY14) No. of locations per screen
454
1.4
102
3083700
298
0.5
92
1677852
3709
2
3537
539229
Particulars
PVR
Inox
UFO Moviez
Increasing share of Advertisement revenue
1200
1000
20.7
23.8
22.2
17.9
20.0
999
800
15.0
600
695
400
200
25.0
513
370
10.0
5.0
0
0.0
FY12
FY13
Advertising Revenue
FY14
H1FY15
% of total revenue (RHS)
Long-term contracts enable visible revenue streams
UMIL contracts with UFO M-4 exhibitor customers are typically long-term contracts
which were entered into for periods of approximately ten years and allow for
exhibitors to terminate for convenience only after a period of approximately four
April 28, 2015 | 3
IPO (contd...)
years, giving visible and dependable streams of revenue. Its revenues are also
diversified and come from three primary sources: distributors, exhibitors and
advertisers. In fiscal 2014, revenue from: (i) distributors, which includes Virtual Print
Fees (VPF) from both DCI and Non-DCI, accounted for 50.50% of consolidated total
revenues, (ii) exhibitors, which includes Lease rental income – (both Non - DCI (ECinema and DCI (D-Cinema)) and sales of products (including lamps and digital
cinema equipment), accounted for 23.18% of consolidated total revenues, and (iii)
advertisers, which includes advertisement revenue (primarily from in-cinema
advertising), accounted for 23.72% of consolidated total revenues.
Future Growth Strategy
Leverage existing platform for growth of advertising business
UMIL intends to grow the revenue from its advertising business through deepening
advertiser engagement, attracting new advertisers to its platform, expanding its
on-screen advertising offerings, growing its advertising spot rates and monetizing
below-the-line advertising opportunities. It believes that it has the opportunity to
further grow its on-screen advertising which, as at February 28, 2015, on a fiscal
year to date basis, is at 3.36 minutes sold per show per advertising screen. In many
advertising screens, it also has the rights to monetize additional commercial space
which it intends to utilize for setting up kiosks for its corporate customers for product
promotions. In addition, it is also exploring new opportunities including
advertisements on movie tickets, seat covers, ticketing windows, parking lots and
other public spaces.
Leverage existing platform for growth of exhibition business.
UMIL believes it has the opportunity to leverage its technology platform and its
relationships with distributors and advertisers to expand the movie exhibition market
in India through innovative models. As per the company, India is an under-penetrated
movie exhibition market relative to developed and other emerging markets. Given
the potential growth of the exhibition business in India, it plans to develop, invest
and grow innovative low capital expenditure exhibition and advertising models.
Continue to innovate in new areas that leverage its platforms.
UMIL intends to continue innovative business development efforts which leverage
it technology platform to add value to key stakeholders, such as distributors,
exhibitors and advertisers. It believes it has the opportunity to work with content
owners and exhibitors to screen high-impact alternate content, such as sporting
events and award nights. It believes that access to the advertisement sales network
at larger media companies can greatly increase its reach to regional and local
advertisers who have historically advertised primarily on television and print. For
example, it is considering working with leading media companies for bundling of its
on-screen advertising inventory with their existing advertising packages.
Financial Performance
The net sales of the company stood at Rs 4204 mn in FY14 from Rs 732 mn in FY10,
signifying growth of 54.8% CAGR over the period. This was primarily driven by
advertisement revenue and introduction of D-Cinema services in India in FY12.
EBITDA margin of the company improved from 2.2% to 31.2% in FY14 on account of
operating leverage arising out of higher number of movies releasing every year.
EBITDA of the company stood at Rs 1310 mn in FY14 from Rs 16 mn in FY10, growing
at 200% CAGR over the period. The company reported net profit of Rs 517 mn in
FY14 against loss of Rs 2378 mn in FY10. The company achieved ROE of 13.8% and
ROCE of 12.7% in FY14. The company has completed major capex and is likely to
report better profitability going forward.
April 28, 2015 | 4
IPO (contd...)
Revenue growing at 54.8% CAGR
Revenue Mix
90.0
62.7
70
60
48.7
2500.0
40.0
50
2000.0
40
25.0
1500.0
20
731.6
1088.0
2067.1
3362.3
4204.3
3547.4
0.0
FY10
FY11
FY12
Revenue
FY13
FY14
9mFY15
3210
3332
28.0
29.8
FY11
Rs Mn
2267
1927
29.9
22.6
19.5
18.6
17.9
20.7
23.8
22.2
FY12
FY13
FY14
9mFY15
VPF Print Fees (E-Cinema)
Lease Rentals
Others
31.2
33.4
35
30
24.8
25
1310
600
1057
10.7
1139
20
1186
15
400
200
470
10
514
2.2
16
117
FY10
FY11
5
0
0
FY12
FY13
E-Cinema
D-Cinema
FY14
9mFY15
12.3
11.5
FY14
9mFY15
EBITDA Margin (RHS)
3.1
5.0
300
386
100
517
0.0
406
65
-5.0
-10.0
FY11 -14.5 FY12
FY13
FY14
-158
9mFY15
-15.0
-20.0
-238
-25.0
-500
-30.0
-32.5
Net Profit
%
15.0
10.0
FY10
FY13
Return Ratios (%)
11.5
700
500
FY12
EBITDA
Advertisement Screens
PAT margin at 12%
-700
31.4
800
0
-300
31.0
40
1000
-100
10.9
22.3
31.4
1000
2000
10.0
9.9
12.0
1200
2859
2328
500
Rs Mn
0.0
3.1
13.8
1400
3366
2597
1500
0.0
2.5
13.2
EBITDA margin reached at 31%
3691
2500
12.7
Sale of Equipment
4000
3038
22.8
VPF Print Fees (D-Cinema)
Growth (%) - RHS
No. of Screens under Operation
3500
2.7
21.8
26.6
FY10
Ad Revenues
0
3.9
23.6
13.3
0.0
10
5.2
14.2
27.8
20.0
30
1000.0
Number of Screens
60.0
(%)
Rs mn
3000.0
25.1
80.0
80
3500.0
3000
7.1
90
4000.0
500.0
100.0
100
%
4500.0
-35.0
20
12.4
15
10
4.4
11.8
5
0
-5
FY10
-10
-15
-20
FY11
-11.2
-6.8
2.6
FY12
FY13
12.6
13.8
FY14
-12.4
-23.1
-25
Net Profit Margin (RHS)
ROCE
ROE
April 28, 2015 | 5
IPO (contd...)
Key Concerns
Decline in pace of new screen openings: In the event of decline in new screen openings,
the company revenue growth from VPF would be adversely affected as it is directly related
to number of screens
Low movie releases: Hollywood has been releasing lower number of movies over the last
few years. If the same trend develops in Indian movies, the revenues of the company
would be adversely affected.
Dispute with Real Image Media Technologies Private Ltd (RIMTPL), key competitor: There
is a dispute between UMIL and RIMTPL wherein RIMTPL has asserted that it is the inventor
of certain technological processes protected by Indian patent and it believes that aspects
of those patents also form part of UMIL’s technology. In case of matter judgement going
against UMIL, it could adversely impact the operations of the company.
Increase in preference for alternative sources of cinema watching: Technological
advancements such as video on demand, mobile and internet streaming and downloading
have increased the number of entertainment and information delivery choices available
to consumers and have intensified the challenges posed by audience fragmentation.
Movies may also be released under alternative methods, such as DVD or HD DVD, cable
television, downloads via the internet, video discs, video on demand, satellite and payper-view services. The increasing number of choices available to audiences could negatively
impact consumer demand for viewing movies in a cinema, which could impact the
company’s performance.
Company Background
UMIL, incorporated in 2004, is in the business of providing one-stop digital cinema solution
for movie producers, distributors and exhibitors. It also offers a platform for advertisers
that enable maximum engagement with cinema goers through in-cinema advertising
platform. It has India’s largest satellite based digital cinema distribution network and incinema advertising platform (in terms of numbers of screens) as at October 31, 2014. It
has an overall 54% market share in India’s digital cinema exhibition industry in terms of
screens that use digital cinema distribution networks. As at February 28, 2015, its global
network spans 6,626 screens worldwide, including 4,911 screens across India and 1,715
screens across Nepal, the Middle East, Israel, Mexico and the USA.
The company delivers movie content through (i) satellite-based cinema distribution
network using its UFO-M4 platform, and (ii) D-Cinema network:

UFO-M4 is satellite-based, E-Cinema movie delivery platform. “E-Cinema” is a
commonly used term to describe various technologies used to digitally deliver movie
content other than through DCinema. Its UFO-M4 platform provides an end-to-end
platform for the satellite delivery of movies (excluding movies from the major
Hollywood studios that created the D-Cinema standard format).

Under D-Cinema network, its primary activities include: (i) collecting VPF D-Cinema
from certain major Hollywood studios and other movie studios, and (ii) providing
D-Cinema equipment to D-Cinemas across India. The company has D-Cinema
deployment contracts with certain major Hollywood studios which allows it to collect
VPF D-Cinema from those studios. As at February 28, 2015, the company collects
VPF D-Cinema for 1,449 screens across India. It further provides D-Cinema
equipment to 680 D-Cinema screens across India.
Valuable Digital Screens Private Limited (VDSPL), currently 80% subsidiary of the company,
operates “Club Cinema” and “Caravan Cinema”. The “Club Cinema” business provides
digital screening of movies in clubs and community centres at private screens, such as
remote industrial townships, corporate auditoriums, educational institutions and other
leisure and entertainment complexes. The “Caravan Cinema” business provides movie
screenings with low capital expenditures in targeted rural areas, especially “Haats” (weekly
market place at villages), creating a unique opportunity for advertisers to reach a captive
audience by partnering with various brands. Currently, movies are screened free to viewers
and Caravan Cinema derives its revenues through advertising.
April 28, 2015 | 6
IPO (contd...)
Under an exclusive arrangement with Impact Media Exchange Limited, UMIL is
marketing an electronic ticketing platform known as the Integrated Media Pact, or
“IMPACT”, to improve transparency, efficiency and accountability in movie screening
industry. The transactions on IMPACT are captured on a real time basis as it is
connected via satellite to a centralised Network Operation Centre. IMPACT mediates
the transactions between exhibitors on one hand and distributors on the other,
ensuring that ticketing transactions and movie screenings are transparent. IMPACT
has been designed to ultimately act as a settlement exchange for various
stakeholders of the movie screening industry. As at February 28, 2015, IMPACT has
been deployed in 310 screens in India and currently the company charges rentals
from exhibitors for the use of IMPACT.
Business Model of UFO
CORPORATE STRUCTURE
Subsidiaries of UFO Moviez India Ltd.
Scrabble Entertainment
Ltd. (SEL) (91.33%)
Subsidiaries
Scrabble
Entertainment JLT,
Dubai (100%)
Associates
Scrabble
Digital Ltd
(33.33%)
Scrabble
Scrabble Digital JLT,
Entertainment
Dubai (33.33%)
Mauritius Ltd. (100%)
Scrabble Venture
Scrabble Lebanon
LLC, USA (30%)
(100%)
Scrabble Ventures,
Scrabble Digital Inc, S. de R.L. de C.V,
USA (100%)
Mexico (30%)
V N Films
Private
Ltd.
(100%)
Mukta
V N Films
Pvt Ltd
(JV)
(45%)
Southern
Digital
Screenz
India
Private
Ltd.
(94.18%)
United
Film
Organisers
Nepal
Private
Ltd.
(100%)
Valuable
Digital
Screen
Private
Ltd.
(80%)
Edridge Limited, Cyprus (100%)
UFO International Ltd, Cyprus (100%)
United Film
UFO Lanka
Organisers
Private Limited.
(UFO)
(100%)
(Mauritius)
Private Limited.
(100%)
UFO Software
Technologies
Private
Limited., India
(95.97%)
April 28, 2015 | 7
IPO (contd...)
Valuation and Outlook
UMIL has been instrumental in the digitisation of Indian cinema industry and has
enjoyed first mover advantage gaining market leadership position with share of
~54% as at October 2014. There are three main sources of revenue for the company
namely Lease rental, Virtual Print Fee and Advertisement .
1.
Lease Rental (~23% of revenue) - Since more than 95% of screens are already
digitised there is less potential for growth in lease rental revenues, unless
there is aggressive screen expansion from exhibitors.
2.
Virtual Print Fees (~50% of revenue) – It is dependent on higher number of
movies releasing every year. In FY14, the film industry released 1856 movies.
As the industry improves, the number of movies generally declines as observed
in Hollywood. We do not expect a significant growth in the number of movies
released going forward.
3.
Advertisement (~23% of revenue) – It is dependent on the number of screens
tied up for in-cinema advertising and the minute inventory. There can be
growth in both the parameters for growth in advertisement revenue. However,
we do not foresee this revenue to drive the overall growth of the company at
historical high levels.
Additionally, the industry faces challenge from internet based competitors and
alternative sources of cinema viewing. The company is aiming at new sources of
revenue with “Club Cinema” and “Caravan Cinema” which would add to the revenue.
It has also started with IMPACT system of ticket booking which could gain pace
going forward. However, currently they are at nascent stage of operations.
At upper band of issue price of Rs 625, the issue is available at annualised FY15 PE
of 29.9x. Though there are no straight comparables for the issue, we have considered
players in Indian and international entertainment industry. Indian players are
exhibitors and may have in-cinema advertising operations while international players
operate as digital integrators along with other businesses. Taking into consideration
the peer valuation which operate similar business, the valuation does not appear
to be attractive. In our opinion, the potential topline growth in the near-term does
not justify the valuation of the company at the current IPO price band. Hence we
recommend AVOID to the issue.
Particulars
Currency
CMP
(Rs)
INR
INR
622
155
-
25810
14958
20384
15287
9976
12631
GBP
USD
EUR
495
37
8
625
1306
2620
62
1329
16186
619
291
82
331
4730
Indian Players
PVR
Inox
Average
International Players
Cineworld group PLC
IMAX Corporation
Ymagis S.A.
Average
UMIL
INR
Market Cap Sales EBITDA margin
(Mn)
(Rs Mn)
(%)
ROE
(%)
P/E
(x)
EV/EBITDA Market Cap/Sales
(FY16E)
(x)
15.1
13.7
14.4
11.7
10.3
11.0
47.9
54.5
51.2
13.7
13.4
13.5
1.7
1.5
1.6
12.9
32.7
31.4
25.7
33.4
15.6
11.3
8.1
11.7
13.8
20.1
49.8
21.5
30.5
29.9
12.5
26.7
3.9
14.4
10.9
2.1
9.0
0.7
4.0
3.4
Source: Bloomberg, RHP, IndiaNivesh Research
Note: International players have Dec Year ending. Financials = CY14.
Indian Players - FY15E consensus estimates. UMIL = annualized wherever applicable.
April 28, 2015 | 8
IPO (contd...)
Consolidated Financial Statement
Income statement
Y E March (Rs m)
Net sales
Growth %
Expenditure
Total Consumeables
Other Direct Costs
Employee
Others
EBITDA
Growth %
EBITDA Margin %
Other Income
Depreciation and amortisation
EBIT
EBIT Margin %
Interest
Exceptional/Extraordinary item
PBT
PBT Margin %
Tax
Effective tax rate %
PAT
Less: Share of profit transferred to Minority
Net Profit
Growth%
Adj. PAT Margin %
Balance sheet
FY10 FY11 FY12
732 1088 2067
0.0
0.0
716 971 1553
65
86 389
231 268 342
151 198 333
268 419 490
16 117 514
625.8 339.8
2.2 10.7 24.8
3
12
9
197 254 390
-178 -126 133
-24.3 -11.6
6.5
60
33
46
0
0
0
-238 -158
87
-32.5 -14.5
4.2
0
0
24
0
0
27
-238 -158
63
0
0
-1
-238 -158
65
-32.5 -14.5
3.1
FY13
3362
62.7
2306
602
679
448
576
1057
105.8
31.4
13
536
533
15.9
121
0
412
12.3
24
6
388
2
386
57.3
11.5
FY14 9mFY15
4204
3547
25.0
NA
2894
2362
463
334
1202
1062
553
431
676
535
1310
1186
24.0
NA
31.2
33.4
7
25
655
569
662
641
15.8
18.1
164
120
0
0
498
521
11.8
14.7
-11
127
-2
34
509
394
-8
12
517
382
2.1
-16.5
12.3
10.8
FY10 FY11 FY12 FY13 FY14 9mFY15
-238 -158
87 412 498
521
197
127
15
-8
94
-371
-277
22
-349
-47
6
254 390 536 655
138
58 186 191
-74 224 -210
22
-30
-65
-81 -166
130 694 843 1199
-385 -1326 -1127 -1343
-255 -633 -284 -143
-338 -515
31 -86
-723 -1841 -1095 -1429
-38
-87 -136 -179
44 1204 554 409
569
159
-329
-229
691
-311
380
-244
-555
-154
-32
250
0
209
-46
146
100
61
161
658
0
1
2
665 1119
72
-29
100 171
172 142
27 376
199 518
0
5
-181
-45
337
292
246
538
0
3
422
169
146
316
105
421
0
4
235
5
303
309
209
518
FY10
187
0
845
1031
0
403
0
1435
1150
76
1225
144
0
9
621
53
143
161
254
11
564
57
0
1435
FY11
202
440
1165
1806
1
447
0
2254
1186
76
1262
418
0
184
1033
41
388
199
405
0
643
390
0
2254
FY12
259
0
2838
3097
144
774
0
4015
1973
508
2481
1168
13
28
1373
103
392
518
350
11
1049
324
0
4015
FY13
259
0
3206
3465
109
1290
0
4865
2676
312
2987
1309
22
135
1834
106
758
421
462
87
1421
413
0
4865
FY14 9mFY15
259
259
0
0
3743
4160
4002
4419
148
65
1715
1637
0
0
5865
6122
3462
3183
199
146
3660
3329
1366
1676
131
187
106
154
2163
2781
97
89
913
1336
518
538
529
610
106
208
1562
2005
601
776
0
0
5865
6122
Key ratios
Cash Flow
Y E March (Rs m)
PBT
Adjustment for:
Depreciation
Others
Changes in working capital
Tax expenses
Cash flow from operations
Capital expenditure
Free Cash Flow
Others
Cash flow from investments
Interest
Loans availed or (repaid)
Proceeds from Issue of shares (incl share
premium)
Dividend paid (incl tax)
Cash flow from Financing
Net change in cash
Cash at the beginning of the year
Cash at the end of the year
Other Bank balances
Cash as per Balance Sheet
Y E March (Rs m)
Share Capital
Share Application Money
Reserves & Surplus
Net Worth
Minority Interest
Total debt
Net defered tax liability
Total Liabilities
Net Assets
Capital Work in Progress
Net Fixed Assets
Goodwill on Consolidation
Defered Tax Assets
Investments
Current Assets
Inventories
Sundry Debtors
Cash & Bank Balance
Loans & advances
Other Current assets
Current Liabilities & provisions
Net Current Assets
Mis Exp not written off
Total assets
Y E March
EPS (Rs)
FY10 FY11 FY12 FY13 FY14 9mFY15
-12.7 -7.9 2.5 14.9 19.9
15.7
Cash EPS (Rs)
-2.2
4.8 17.5 35.6 45.2
37.7
BVPS
55.3 89.6 119.6 133.8 154.5
170.6
P/E (x)
P/CEPS (x)
P/BV (x)
EV/EBITDA(x)
M cap/sales (x)
-49.1
-287.8
11.3
739.9
15.9
-79.6 250.5 42.0 31.3
131.3 35.6 17.6 13.8
7.0 5.2 4.7 4.0
110.0 32.0 16.1 13.3
11.6 7.8 4.8 3.8
39.8
16.6
3.7
14.6
4.6
ROCE
ROE
-12.4 -6.8
-23.1 -11.2
4.4 12.4 12.6
2.6 11.8 13.8
NA
NA
Inventory (days)
Debtors (days)
Trade Payables (days)
26.2 15.6 12.7 11.3 8.8
71.2 89.0 68.8 62.4 72.6
39.5 48.4 36.2 30.0 40.9
6.9
103.5
51.7
Total Asset Turnover (x)
Fixed Asset Turnover (x)
Debt/equity (x)
Debt/ebitda (x)
Interest Coverage (x)
Dividend Yield %
0.4
0.6
0.5
0.9
0.6
1.1
0.8
1.2
0.8
1.3
NA
NA
0.4
25.1
-3.0
0.0
0.2
3.8
-3.9
0.0
0.2
1.5
2.9
0.0
0.4
1.2
4.4
0.0
0.4
1.3
4.0
0.0
0.4
1.4
5.3
0.0
April 28, 2015 | 9
IPO (contd...)
Disclaimer: This report has been prepared by IndiaNivesh Securities Private Limited (“INSPL”) and published in accordance with the provisions of Regulation 18 of the Securities and Exchange Board of
India (Research Analysts) Regulations, 2014, for use by the recipient as information only and is not for circulation or public distribution. INSPL includes subsidiaries, group and associate companies,
promoters, directors, employees and affiliates. This report is not to be altered, transmitted, reproduced, copied, redistributed, uploaded, published or made available to others, in any form, in whole or
in part, for any purpose without prior written permission from INSPL. The projections and the forecasts described in this report are based upon a number of estimates and assumptions and are inherently
subject to significant uncertainties and contingencies. Projections and forecasts are necessarily speculative in nature, and it can be expected that one or more of the estimates on which the projections
are forecasts were based will not materialize or will vary significantly from actual results and such variations will likely increase over the period of time. All the projections and forecasts described in this
report have been prepared solely by authors of this report independently. None of the forecasts were prepared with a view towards compliance with published guidelines or generally accepted
accounting principles.
This report should not be construed as an offer to sell or the solicitation of an offer to buy, purchase or subscribe to any securities, and neither this report nor anything contained therein shall form the
basis of or be relied upon in connection with any contract or commitment whatsoever. It does not constitute a personal recommendation or take into account the particular investment objective,
financial situation or needs of individual clients. The research analysts of INSPL have adhered to the code of conduct under Regulation 24 (2) of the Securities and Exchange Board of India (Research
Analysts) Regulations, 2014. The recipients of this report must make their own investment decisions, based on their own investment objectives, financial situation or needs and other factors. The
recipients should consider and independently evaluate whether it is suitable for its/ his/ her/their particular circumstances and if necessary, seek professional / financial advice as there is substantial risk
of loss. INSPL does not take any responsibility thereof. Any such recipient shall be responsible for conducting his/her/its/their own investigation and analysis of the information contained or referred to
in this report and of evaluating the merits and risks involved in securities forming the subject matter of this report. The price and value of the investment referred to in this report and income from them
may go up as well as down, and investors may realize profit/loss on their investments. Past performance is not a guide for future performance. Actual results may differ materially from those set forth in
the projection.
Except for the historical information contained herein, statements in this report, which contain words such as ‘will’, ‘would’, etc., and similar expressions or variations of such words may constitute
‘forward-looking statements’. These forward-looking statements involve a number of risks, uncertainties and other factors that could cause actual results to differ materially from those suggested by the
forward-looking statements. Forward-looking statements are not predictions and may be subject to change without notice. INSPL undertakes no obligation to update forward-looking statements to
reflect events or circumstances after the date thereof. INSPL accepts no liabilities for any loss or damage of any kind arising out of use of this report.
This report has been prepared by INSPL based upon the information available in the public domain and other public sources believed to be reliable. Though utmost care has been taken to ensure its
accuracy and completeness, no representation or warranty, express or implied is made by INSPL that such information is accurate or complete and/or is independently verified. The contents of this report
represent the assumptions and projections of INSPL and INSPL does not guarantee the accuracy or reliability of any projection, assurances or advice made herein. Nothing in this report constitutes
investment, legal, accounting and/or tax advice or a representation that any investment or strategy is suitable or appropriate to recipients’ specific circumstances. This report is based / focused on
fundamentals of the Company and forward-looking statements as such, may not match with a report on a company’s technical analysis report. This report may not be followed by any specific event
update/ follow-up.
Following table contains the disclosure of interest in order to adhere to utmost transparency in the matter;
Disclosure of Interest Statement
1. Details of business activity of IndiaNivesh Securities Private Limited (INSPL)
INSPL is a Stock Broker registered with BSE, NSE and MCX - SX in all the major segments viz. Cash, F & O and
CDS segments. INSPL is also a Depository Participant and registered with both Depository viz. CDSL and NSDL.
Further, INSPL is a Registered Portfolio Manager and is registered with SEBI.
2. Details of Disciplinary History of INSPL
No disciplinary action is / was running / initiated against INSPL
3. Research analyst or INSPL or its relatives'/associates' financial interest in the
subject company and nature of such financial interest
No (except to the extent of shares held by Research analyst or INSPL or its relatives'/associates')
4. Whether Research analyst or INSPL or its relatives'/associates' is holding the
securities of the subject company
No
5. Research analyst or INSPL or its relatives'/associates' actual/beneficial ownership of 1% or more
in securities of the subject company, at the end of the month immediately preceding the
date of publication of the document.
No
6. Research analyst or INSPL or its relatives'/associates' any other material conflict of interest
at the time of publication of the document
No
7. Has research analyst or INSPL or its associates received any compensation from the
subject company in the past 12 months
No
8. Has research analyst or INSPL or its associates managed or co-managed public offering of
securities for the subject company in the past 12 months
No
9. Has research analyst or INSPL or its associates received any compensation for investment banking
or merchant banking or brokerage services from the subject company in the past 12 months
No
10. Has research analyst or INSPL or its associates received any compensation for products or services
other than investment banking or merchant banking or brokerage services from the subject
company in the past 12 months
No
11. Has research analyst or INSPL or its associates received any compensation or other benefits
from the subject company or third party in connection with the document.
No
12. Has research analyst served as an officer, director or employee of the subject company
No
13. Has research analyst or INSPL engaged in market making activity for the subject company
No
14. Other disclosures
No
INSPL, its affiliates, directors, its proprietary trading and investment businesses may, from time to time, make investment decisions that are inconsistent with or contradictory to the recommendations expressed
herein. The views contained in this document are those of the analyst, and the company may or may not subscribe to all the views expressed within. This information is subject to change, as per applicable law,
without any prior notice. INSPL reserves the right to make modifications and alternations to this statement, as may be required, from time to time.
Definitions of ratings
BUY. We expect this stock to deliver more than 15% returns over the next 12 months.
HOLD. We expect this stock to deliver -15% to +15% returns over the next 12 months.
SELL. We expect this stock to deliver <-15% returns over the next 12 months.
Our target prices are on a 12-month horizon basis.
Other definitions
NR = Not Rated. The investment rating and target price, if any, have been arrived at due to certain circumstances not in control of INSPL
CS = Coverage Suspended. INSPL has suspended coverage of this company.
UR=Under Review. Such e invest review happens when any developments have already occurred or likely to occur in target company & INSPL analyst is waiting for some more information to draw conclusion on
rating/target.
NA = Not Available or Not Applicable. The information is not available for display or is not applicable.
NM = Not Meaningful. The information is not meaningful and is therefore excluded.
Research Analyst has not served as an officer, director or employee of Subject Company
One year Price history of the daily closing price of the securities covered in this note is available at www.nseindia.com and www.economictimes.indiatimes.com/markets/stocks/stock-quotes. (Choose name of
company in the list browse companies and select 1 year in icon YTD in the price chart)
IndiaNivesh Securities Private Limited
601 & 602, Sukh Sagar, N. S. Patkar Marg, Girgaum Chowpatty, Mumbai 400 007.
Tel: (022) 66188800 / Fax: (022) 66188899
e-mail: research@indianivesh.in | Website: www.indianivesh.in
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April 28, 2015 | 10

UFO Moviez India _IPO Note_28042015.pmd

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