Span Capital Services
SCS
HOLD
Mukta Arts Ltd. (Rs56)
Mukta Arts Ltd., is a major movie production
house with a market cap of Rs1.26bn
(USD26m).
Company's latest big budget movie 'Yaadein'
(Starring: Superstar Hritik Roshan, Kareena
Kapoor and directed by mega-director:
Subhash Ghai) did not perform well at the boxoffice. We estimate total revenue from
'Yaadein' to be Rs249m, in CY01, much lower
as compared to 'Laagan' and 'Gadar', the
blockbusters of the year.
Territory
Indian Theatrical
Overseas Theatrical
Indian Music
Overseas Music
In Cinema Ads
Satellite Rights***
DVD/VCD Rights**
Total,Rsm
Avg. Rev/Territory
Yaadein Gadar* Laagan*
112
183
118
21
30
50
65
15
70
16
15
30
30
0
0
10
50
40
5
10
10
259
303
318
37
43
45
* For 10 Weeks, ** Expected, *** Expected after one Year.
In CY02, Mukta is expected to release three
mid-budget movies including 'Badhai Ho
Badhai', in collaboration with 'Kaushik &
Kapoor' and a movie directed by David
Dhavan. Next big budget Subhash Ghai movie
will be released only in CY03.
Company has de-risked its business model by
entering into studio & equipment hiring
business and Non-film music video. We expect
a 2 Yr. CAGR of 101% to Rs407m and -17%
earnings to Rs42m by CY02. Equipment
division is expected to contribute Rs86m at a
CAGR of 42%.
The company trades at 30.4x CY02, 175%
premium to Balaji Telefilms Ltd. (11.1x FY02),
though Rs850m+ in cash (Rs38/ per share) is
a positive. We initiate coverage with a HOLD.
Brief Financial:
Year To Dec
Revenue, Rsm
Earnings, Rsm
% Change
OPM %
NPM %
ROE %
EPS, Rs
PE@Rs56
CY99
237
66
1062%
40%
28%
74%
2.9
19.2
CY00
CY01E CY02F
101
352
407
60
81
42
-9%
34%
-48%
66%
33%
17%
60%
23%
10%
9%
7%
3%
2.7
3.6
1.8
21.0
15.7
30.4
Recent Quarterly:
Yr to Dec
Revenue, Rsm
Expenses
EBDIT
PBT
Tax
PAT
2QCY01
123
45
78
40
0
40
Q-o-Q
527%
310%
805%
136%
0%
136%
CY00
Y-o-Y
101
-57%
34
-76%
66
-30%
77
-15%
17
-32%
60
-9%
Key Ratios:
CY99
Mcap to Sales
Sales to Gross
Receivable Days
Inventory Days
5
3
22
1
CY00
CY01E CY02F
11
3
3
1
2
1
64
29
31
366
93
67
Stock Market Data:
BSE Code
BSE Index
3-mth avg daily vol,mn
52 week H/L
Promoter Holding
532357
2600
0.8m
295/52
68%
Key Data:
Market Capitalization
Issued Shares
Price To Book- CY00A
Next Result
Stock Price Performance:
Rs1.3bn/USD26m
22.6m
1.1x
3QCY01
www.muktaarts.com
Earning Statement:
Yr to Dec (Rsmn)
Film Division
Equip. Division
Music Album
Net OI
CY99
228
8
0
237
Expenses
Film Production
Equipment
Division
Version Releases
Music Album
Admin & Selling
Pre. Exp. W/off
Total Expenses
Cash Flow Statement:
CY00
CY01E CY02F
58
284
311
43
63
86
0
5
10
101
352
407
129
0
0
0
185
14
280
20
2
0
11
0
142
4
0
26
5
34
0
2
28
6
235
0
5
25
6
336
Oper. Income
Other Income
Gross Income
95
2
97
66
24
91
117
43
160
71
59
129
Financial Charges
Insurance Cover*
Depreciation
PBT
Tax
PAT
0
0
6
91
25
66
0
0
14
77
17
60
1
39
25
95
14
81
0
39
32
58
17
42
2.7
21.0
3.6
15.7
1.8
30.4
Yr to Dec (Rsmn) CY99
Sources of Funds
Net Profit
66
Depreciation
6
Inc in Equity Capl
0
Inc in Share Pre.
0
Inc in Loan Funds
-66
Inc in Curr. Lia.
8
Inc in Provis
20
Total
33
Applications of Funds
Dividends
0
Tax on dividend
0
Inc in Gross
2
Inc in CWIP
0
Inc in Investment
-16
Inc in Inventories
-46
Inc in Debtors
13
Inc in L & A
20
Inc in Misc Exp
0
TOTAL
-28
Op cash bal
ADD / (Deficit)
Cl bal of cash
CY00
CY01E
CY02F
60
13
30
971
1
54
48
1177
81
25
0
0
-2
-39
-59
5
42
32
0
0
0
10
3
86
0
0
110
0
830
100
2
85
46
1174
0
0
42
0
100
-11
10
-79
-6
55
0
0
92
0
4
-16
8
3
-6
85
69
4
72
72
-50
22
22
1
23
8
61
68
* Insurance Cover For Subhash Ghai
EPS, Rs
PE@Rs56
2.9
19.2
Balance Sheet:
Yr to Dec (Rsmn)
Share Capital
Share Premium
Res & Surplus
Networth
CY99
0.1
0
121
121
Secured Loans
Unsecured
Total Loan
Total
Application of Funds
Gross Block
Depreciation
Net Block
Net Investment
Investments
Current Asset
Inventory
Debtors
Cash & Bank
Loans & Adv.
Sundry Creditors
Provisions
Net Curr. Assets
MiscExp.Not Woff
Total
0
2
2
123
CY00
CY01E CY02F
113
113
113
971
971
971
99
180
221
1183
1264
1305
2
0
2
1185
0
0
0
1264
0
0
0
1305
70
30
40
40
4
180
43
138
138
834
222
68
154
154
934
314
100
214
214
938
149
1
20
69
60
45
25
79
0
123
340
101
22
72
145
99
73
167
46
1185
209
90
32
22
66
60
14
136
40
1264
205
75
39
23
69
70
17
119
34
1305
Key Statistics & Ratios:
Yr to Dec
CY99
Business Growth
Revenue
459%
Earnings
1062%
Margins
OPM
40%
Pre-Tax
38%
NPM
28%
Profitability
ROE
74%
ROA
53%
CY00
CY01E
CY02F
-57%
-9%
249%
34%
16%
-48%
66%
77%
60%
33%
27%
23%
17%
14%
10%
9%
9%
7%
7%
3%
3%
Price Sensitivity:
CY99
Price/ EPS
30
55
90
115
140
165
3
10
19
31
39
48
57
CY00
3
11
21
34
43
53
62
CY01E CY02F
4
2
8
16
15
30
25
49
32
62
39
76
46
90
PE Sensitivity:
CY99
EPS
5x
10x
15x
20x
25x
30x
3
15
29
44
58
73
87
CY00
3
13
27
40
53
67
80
CY01E CY02F
4
2
18
9
36
18
54
28
71
37
89
46
107
55
Quarterly Trend:
Yr to Dec (Rs.mn)
Income
Overflow Income
Equipment Division
Movie Territory Rights Sale
Music Rights Sale
Net Operational Income
Other Income
Total Income
1QCY01
2QCY01
15
3QCY01E
4QCY01E
CY01E
CY00A
16
163
63
198
91
352
43
395
25
101
24
125
33
43
5
20
14
33
15
27
81
123
9
132
179
10
189
17
8
5
30
11
40
Expenditure
Cost of Software
Admn. And office Exp.
Other Expenditure
Total Expenditure
0
10
1
11
37
8
0
45
148
15
1
163
0
10
6
16
185
43
7
235
3
26
5
34
Gross Profit
Financial Charges*
Depreciation
PBT
Tax
PAT
22
0
5
17
0
17
87
39
7
40
0
40
26
0
7
19
0
19
25
0
7
18
0
18
160
40
25
95
14
81
91
0
14
77
17
60
* 2QCY01 Financial charges includes Insurance Premium of Rs39m.
Margins %
OPM
NPM
44%
87%
63%
33%
9%
11%
48%
61%
33%
23%
66%
60%
EPS- Annualized
PE@Rs56
3.0
18.6
7.1
7.9
3.4
16.5
3.2
17.3
3.6
15.7
2.7
21.0
Mukta Movies:
Territory Territory Category/ Film
1
Indian Theatrical Revenue
2
Overseas Theater Sale
3
Indian Music Rights
4
Overseas Music Rights
5
In Cinema Ads
6
Satellite Rights
7
DVD/ VCD Rights
Total Revenue, Rsmn
Average Territory Revenue, Rsmn
Rahul* Yaadein
15
112
12
21
25
65
4.7
16
0
30
1
10
0
5
49
259
7
37
* Revenue for Rahul Adjusted for Return of Rs7.5mn to Distributors
** Badhai Ho Badhai
@ David Dhavan Directed Film
# Satish Kaushik Directed Film
BhB**
DDDF@ SKDF#
66
82
61
15
20
15
15
20
7.5
4
8
3
1
1
1
5
5
5
1.5
2
1.5
107
137
94
15
20
13