64 DALAL STREET INVESTMENT JOURNAL I JULY 10 - 23, 2017 DSIJ.in^
COSMO FILMS UFO MOVIEZ
I bought 300 shares of UFO Moviez at `475. Should
I hold or sell?- Amandeep Singh
I bought 275 shares of Cosmo Films at `367. Should
I hold it or should I wait for better returns?- Nandha
BSE/NSE Code 508814 / COSMOFILMS
Face Value ` 10
CMP `431.75
52-Week High 468.80 /Low 310
Your Current
Profit/(Loss)17.64 per cent
BSE/NSE Code 539141 / UFO
Face Value ` 10
CMP ` 389
52-Week High 625 / Low 365
Your Current
Profit/(Loss)(18.10 per cent)
U
FO Moviez India Ltd is India’s largest digital cinema
distribution network and in-cinema advertising platform
with the most number of screens. The company provides
a satellite-based digital cinema distribution network through
UFO-M4 platform. The company operates through over 5,055
digital screens across 1,943 locations in the country and 1,675
screens globally.On the financial front, the company posted an increase in its
net sales by 0.99 per cent to `95.82 crore in Q4FY17, as against
a net sales of `94.88 crore in Q4FY16. However, the company’s
profit after tax decreased by 11.94 per cent in the fourth quarter
of FY17, to `10.18 crore, on a yearly basis. The operating profit
of the company also got reduced by 4.94 per cent to `32.69
crore in Q4FY17, from `34.39 crore in the same quarter of the
previous year.On an annual basis, the company’s net sales increased by 10.64
per cent to `386.14 crore in FY17 as compared with the previous
fiscal. The company’s PAT increased by 6.51 per cent to `54.30
crore in FY17, as against `50.98 crore in the previous fiscal. The
operating profit of the company increased by 2.89 per cent to
`145.04 crore in FY17, from an operating profit of `140.96 crore
in the previous year.The ROCE of the company stood at 15.96 per cent, whereas the
ROCE of company’s peers Eros International and Shemaroo
Entertainment’s was 15.96 per cent and 28.74 per cent,
respectively. The TTM PE of the company at 20.66x, was much
below the industry PE of 38.33x, while its peers Eros
International and Shemaroo Entertainment had a TTM PE of
16.27x and 15.95x, respectively. The company posted a
substantial drop in the profits in the last quarter of FY17, and has
displayed a consistent downward trend in the value of its stock
over the years. We recommend our reader-investors to EXIT the
stock and invest in a better stock.C
osmo Films Ltd is India’s biaxially oriented
polypropylene (BOPP) films manufacturing major with
manufacturing units in India, Korea and the US. Thecompany has a total BOPP manufacturing capacity of 136,000
TPA, and is the largest BOPP film exporter in India. The
company is also one of the largest thermal lamination film
manufacturers in the world.
On the financial front, the company posted an increase in its net
sales by 14.93 per cent to `399.09 crore in Q4FY17, as against
net sales of `347.24 in Q4FY16. The company’s profit after tax
increased 6.34 per cent in the fourth quarter of FY17 to `30.69
crore on a yearly basis. However, the operating profit of the
company got reduced by 24 per cent to Rs 41.14 crore in
Q4FY17 from Rs 54.13 crore in the same quarter of the
previous year.
On an annual basis, the company’s net sales witnessed a slight
increase of 1.23 per cent to Rs 1,457.84 crore in the fiscal year
2017, as compared with the net sales in the previous fiscal. The
company’s PAT also increased 3.05 per cent to Rs 111.57 crore
in FY17, as against Rs 108.27 crore in the previous fiscal.
However, the operating profit of the company declined 9.66 per
cent to Rs 182 crore in FY17, from an operating profit of Rs
201.46 crore in the previous year.
In the recent past, the company has introduced a string of
innovations with the extension in the range of direct thermal
printable (DTP) products, including standard DTP films, high
temperature DTP films, top-coated DTP films and DTP paper.
The company introduced new ultra high barrier films, besides
increasing its production capacity of BOPP films by over 40 per
cent, with the introduction of a new BOPP films line at Karjan.
The company has good growth prospects from a long term view,
therefore, we recommend our reader-investors to Hold the
stock.
HOLD
(Closing price as of July 05, 2017)EXIT
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