UTV ....call given at 337.....

Freinds,
I have recomeded this stock ealier here.I saw a report on Utv today in ET in Midcap Mania column.I have seen in past some 2-3 more stock that I covered here suhc as Mcnally Bharat etc in same space but I today decided to past that article here.....

Broadcasting, movies to drive UTV numbers

Stock Has Appreciated 130% In Past 12 Months
Rajesh Naidu ET INTELLIGENCE GROUP

UTV Software Communications is one of the few players in the entertainment industry pushing to corporatise the movie-making business. However, for years, the company had nothing much to show in terms of superior financial performance. Now, it seems, UTV’s strategy to chuck formula films, in favour of films high on content, is finally paying off.
In the December ‘09 quarter this fiscal, the company’s net sales grew by more than 150% to Rs 159 crore on a year-on-year basis, while its net profit during the period jumped by five times to Rs 40 crore. The company’s performance was driven by the success of newage films such as Kaminey and Wake-up Sid. Earlier in the year, the company had tasted success with DevD. The company produces films under two banners. For first-time and not-soknown directors, the company produces movies under the banner of UTV SpotBoy. While for established directors, it uses its flagship brand — UTV Motion Pictures. Interestingly, UTV is now majority-owned by Walt Disney with around 60% stake, which it has acquired for $400 million around two years ago.
While movie-making remains UTV’s core business, the company has also diversified into broadcasting in the past few years and its bouquet of television channels now include Bloomberg UTV, UTV World Movies, Bindaas, UTV Action and UTV Movies. Thanks to the diversification, movies now account for 48% of its revenues, with the balance coming from television software, broadcasting and gaming. During the April-December ’09 period, broadcasting for a third of its consolidated revenues, while 14% and 16% coming from TV content and its gaming venture, respectively. This diversification protects the company from excessive dependence on revenues from movie-making, which is highly susceptible to the success or failure of a flick.
In the past 12-months, the stock has been an outperformer and has appreciated by around 130% against 70% appreciation in the Sensex during the period. In the coming quarter, the company has good movies lined up which will drive its revenues and profitability. Also, its broadcasting business has picked up well and the company now claims a 17% market share of the total general entertainment segment. These two businesses would continue to drive its performance in future.