The entertainment
sector companies are those indulged in film producing, television, distribution,
music promotion, etc. It is one of the biggest sectors in the Indian industry.
People in India spent a considerable amount of money on entertainment services.
However, after the
spread of COVID-19, the sector is highly impacted and the revenues have gone
down. But as the country is recovering from the pandemic impact and the
lockdowns in different states of the country are being removed, very soon the
multiplexes and Movie theaters will also open. The Television industry has also
managed to continue their shooting and work with proper safety measures and
deliver the content to the audiences.
As and when the day
government announces to open all the movie theaters and multiplexes, the
entertainment stocks are expected to show an upside surge, and making a
position in these stocks at the current level may give you substantial profit.
Here we are going to
discuss the top 4 entertainment stocks in India to invest in 2021
1) 1) SAREGAMA INDIA
Saregama India is
India’s oldest music label and multi-language TV content producing company. The
company is established in 1901 and is headquartered in Kolkata. The chairman of
the company is Mr. Sanjiv Goenka.
Saregama also produces
films under the brand name Yoodlee Films. Saregama also launched its product
Caravan which is a portable music player with pre-loaded Bollywood vintage
songs. The product was quite successful in the market.
The company’s market
capitalization is Rs. 4706 cr. The net sale of the company stood at Rs. 441 cr
for FY 2020-21 even under the impact of COVID-19 against the net sale of Rs.
521 cr for FY 2019-2020. The company has reported a net profit of Rs. 113 cr
for FY 2020-21. The current market price CMP of the stock is Rs. 2690.
With the government
upholding restrictions on Film production and multiplexes getting opened, the
sales of the company and hence profit are expected to grow this year also. The
stock is a good medium to long-term investment stock for investors.
It is listed on both
NSE and BSE with its symbol SAREGAMA on BSE and SAREGAMA-BE on NSE.
2)
2) PVR Ltd.
PVR Ltd. Is the market
leader in terms of the number of screens in India. The company was established
in 1997 and is headquartered at Gurugram. The company has emerged as a brand
for a premium movie theatre experience.
Currently, the company
has 845 screens in 176 cinemas around 71 cities in
India and Sri Lanka. The total seating capacity of approximately 1.82 lakhs
seat. PVR also collects its revenues from the non-box office which includes
primarily from food and beverages.
The market
capitalization of the company is Rs. 8580 cr. The company has reported quarter
on quarter growth in its revenues. The company has reported net sales of Rs.
280 cr in FY 2020-21 against net sales of Rs. 3414 cr. In FY 2019-20. The
drastic decrease in sales is due to the COVID-19 pandemic and lockdown and
government restrictions in all parts of the country. The company is expected to
bounce back with its revenues as the government restrictions are upheld.
The current market
price CMP of the stock is Rs. 1410.15. The company is listed on both NSE and
BSE with its symbol “PVR”.
3)
3) INOX
Leisure
INOX Leisure is one of
the largest multiplex chains operating in India. The company was established in
2002 and headquartered in Mumbai.
The company has 648
screens with 153 multiplexes across 69 cities in India. INOX operates a
Megaplex in Mumbai at InOrbit Mall, Malad, Mumbai which has the highest number
of cinema viewing experiences in the world.
The market
capitalization of the company is Rs. 3924 cr. The net revenue of the company stands
at Rs. 105 cr. For FY 2020-21 against net sales of Rs. 1897 cr in FY 2019-20. Net
loss of Rs. 337 cr for FY 2020-21 is reported by the company.
With Government
restrictions being upheld across the country for multiplexes, the company is
expected to generate huge revenues in the upcoming quarters.
The company is listed
in both NSE and BSE with its symbol “INOXLEISUR”.
4) 4) TIPS
Industries
Tips Industries is one
of the largest music promotion companies in India. The company was founded by
Mr. Ramesh Taurani and Mr. Kumar Taurani in 1975 and is headquartered in
Mumbai.
The company owns more
than 3500 titles and has grossed millions in sales through it. Tips hold
soundtrack copyrights of more than 50 Hindi Movies. Its distributors serve more
than 1000 wholesalers across the country. The company has also entered Film
production and has produced many films.
The market
capitalization of the company is Rs. 1821 cr. The net revenue of the company is
Rs. 90 cr. for FY 2020-21 and is the same as for FY 2019-20. However, the net
profit of the company has inc
reased from Rs. 11 cr in FY 2019-20 to Rs. 43 cr.
in FY 2020-21. The Current Market Price CMP of the company is Rs. 1404.70.
The company is
expected to see an increase in sales with the restriction on film production
and the music industry being removed.
The company is listed
in both the NSE with its symbol “TIPSINDLTD” and BSE with its symbol
“TIPSINDLTD-BE”.
KEY TAKEAWAYS:
Entertainment Industry
has faced a huge fall after the pandemic. However, with the public being homebound,
eagerly waiting for the cinema halls to be opened and the sector can see considerable
growth. Segments like Films may see a slower recovery but the fundamentals of
the stocks remain the same.
Disclaimer:
This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.
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