Rather I believe that this is just the begging of positive things for this industry mainly due to use of BLOCK CHAIN TECHNOLOGY for the database. This will result in tremendous increase in revenue by avoiding piracy to the music industry.
One who is expert in Blockchain can provide their views on this.
Agree with u…but i m more interested in Saregama…as their management looks more professional and aggressive to capitalize on this opportunity
Ok but the price has already run up in the recent past and PE and PB ratio look stretched for saregama.
Whereas Eros and Shemaro have huge potential even if we take 50% that of saregama.
So I prefer Eros International and Shemaro.
It’s my personal view.
This statement is very funny “PE and PB looks stretchef for saregama” when shemaroo does not have a PE because its making losses.
Hiren Gada is CEO & CFO is the company that raises concern about their corporate governance. We can’t rely on their reported numbers.
Any links that can point to hiren gada as not a good cfo, since i have just started looking at this company.
Read the thread and listened to the latest result concalls. The management is not forthcoming in the concalls and they are definitely not good with numbers. Promoters do not seem to have much interest in management.
Whereas Tips and Saregama are at all time high, Shemaroo has been left far behind. Often this kind of pattern indicates corporate governance issue of some kind. One has to be wary while investing in such companies. The company itself may benefit due to the evolving monetisation dynamics, but whether they will appear on the accounts or not will remain a question.
Share price movement is intimidating ranging from nearly +10% to -5% within a single session. Initially I thought it may be due to the poor experience of the earlier investors who are looking to exit, but the deep correction in the stock price over the last two years cannot be explained only based on the loss during one year.
One cannot simply assume about corporate governance or management decisions based on stock prices.
If you compare the price of ITC whether you will say the management is not good.
Shemaro stock price May not have rallied as others but still it is undervalued like Eros International. Hope the marker will realise shortly
You are right. I have not proved any serious corporate governance issue. However, as I have pointed, they are not forthcoming in concalls, such as with future projections. Earlier in the thread, other people have pointed, a lot of cash flow goes into buying inventory but the revenue has been falling. If the company is not forthcoming, it may be construed that the future is not looking very bright (therefore the management is trying to avoid painting an ugly picture). Or probably just that the management is not investor-friendly.
Such stocks have low predictability. Only after the results come out, we will know whether it has been a good quarter or not. We cannot project the future with confidence. If the results are good, the market will probably reward. It is possible to make some money in such stocks (if one buys at bottom and sells above bottom), but personally I find doing that difficult.
I agree with you on that, was going through the last con-call , and i could hear other investors pointing out that the current management just paints a rosy picture and is not delivering and so this is priced accordingly. Lets see if all this digital monetization of digital asset and there new channel “marathi bana” yields some result.
Disclosure: Invested some money for tracking purpose.
Whats your take on Sun TV which is also in similar space and lower valuations but not talked about…
The CFO’s role is to institute and manage financial controls that assure equity owners that funds are not being misused, misdirected or misrepresented. The CEO may recommend the CFO, but as a corporate officer s/he must be elected by the Board of Directors. A good CFO will ensure that the CEO’s decisions and practices operate within the boundaries and principles of corporate and fiscal policy.
Due to CFO’s role of managing accounting and overseeing controls, CFOs often also act as the company’s primary interface to investors and shareholders. It’s another check and balance with the CEO who the public expects to be the cheerleader and, hence, somewhat biased.
Any idea how many songs they have
Is it 20000 correct
Anyone having info please share
Just read the past of the business, follow what the management has stated and see what has happened. Turned out to be a cyclical as advertising renveues crashed due to dependence on TV&Broadcasting. This is where Tips and saregama are different, their primary source is streaming. Ads over digital media are growing secularly vs traditional media. Signs of capital missalocation. Many veterans were stuck in this story. Better to learn from their experience than to make your own.
Management is not giving revenue breakup citing competitive reasons, nor giving any clarity on the inventory held by them which I think is waiting to be written off big time.
Investments into TV channels when entire world is moving online is not so great idea.
When different businesses like streaming on OTT platforms, TV channels are under one head, market will at best give them TV channel valuation. We know how Zee and sun despite having decent growth are not valued at high multiple, same will happen with Shemaroo.
Having said that, stock is trading at cheap valuation and will surely give some decent returns from this level but it`s better to bet on businesses which are having tailwind like music streaming companies
Here are my notes from their Q4FY21 concall.
- Management seemed much more confident
- Digital media: Telecom + YouTube + syndication deals with OTT like Netflix/amazon + ShemarooMe
- Traditional media: DTH + broadcasting channel + TV syndication deals
- Investment into new initiatives: 13 cr. in Q4FY21 (58 cr. for FY21). Consistently try new ideas and curtail further capital investments if ideas don’t work out (e.g. Bollywood based cloud kitchen business shut in March 2021). New initiatives will be funded by internal accruals and not external capital (debt)
- Lots of TV channels have used all the existing contracted libraries, it’s now time for them to replenish those libraries. In normal years, 20% of library gets replenished every year
- Have funded inventory largely by using debt which has now reached peak levels and should taper down. Internal cashflow being generated is currently sufficient to service debt. Peak cashflow requirements are past now and should be much more tempered going forward. Not planning to sell part or full library, but want to monetize it through their B2B2C initiatives
- Employee expenses came down because the teams that were working on certain new initiatives that were subsequently discontinued were let go. Existing team members were not laid off, however there were no salary raise. Salary increment has now been announced in April 2021 and there will be slight increase in employee headcount
- Had expected break-even for Q2FY22 initially in TV channel venture which has been delayed due to second wave
- Relaunched Gujarati OTT app for ShemarooMe
- At peak, VAC revenue from telecom accounted for 50% of digital revenue. The de-growth impact of telecom will continue until Q1FY22
- Gained good consumer connect in MarathiBana (according to company’s survey). Entry of Zee Chitramandir has expanded market size. Zee has a very good Marathi library
Disclosure: Not invested
Hi. Can anyone say how many songs in audio format Shemaroo actually owns. As far as I know they own licenses for Video format of some songs. Does anyone know this data @desaidhwanil sir do you have any idea on this front on songs which they own
Dolly Khanna bought stake in shemaroo
Thanks for updating. But IMHO this Dolly Khanna name is really overhyped in the smallcap space. I dont doubt the smartness of the investor here at all but am really perplexed sometimes of how the finance media creates such superhero investors when so many of their investments in past have been dud and they are trying to just jack up prices of such companies in a super charged bull market by buying just lil higher than 1% stake to come up in quarterly shareholding disclosures and get followed by the poor retail investors who try to clone their investments without proper due diligence. A simple search on screener shows Dolly Khanna getting in and out of more than 75 small caps in last 4-5 years and it seems it has proven to be an amazing playground for her husband who runs the portfolio in her name. Disc : Have been invested at high levels sine 5 yrs now