Result Update June 2, 2015

Rating matrix Rating : Buy (EROINT) | 416 Target : | 500 Target Period : 12 months Potential Upside : 20% Growing share of library monetization to support box What’s changed? office collection… Target Changed from | 460 to | 500 EPS FY16E Changed from | 32.5 to | 31.8 • Eros reported topline of | 449.1 in Q4FY15, up 42.7% YoY EPS FY17E Changed from | 38.3 to | 38.5 versus estimates of | 320.1 crore on account of better than expected Rating Unchanged box performance of medium/low budget movies like “NH10”, “Tevar” Quarterly performance and “Badlapur” and also better library monetization. Q4FY15 Q4FY14 YoY (%) Q3FY15 QoQ (%) • However, EBITDA came in at | 68.2 crore (IDirect expectation of | Revenue 449.1 314.6 42.7 490.7 -8.5 76.3 crore) due to higher movie production and amortization cost EBITDA 68.2 73.6 (7.3) 147.2 -53.7 and provisioning for bad debts. EBITDA (%) 15.2 23.4 -819 bps 30.0 -1481 bps • Eros reported PAT of | 51.7 crore, partly aided by higher other

PAT 51.7 41.4 25.0 109.3 -52.7 income pertaining to recovery of previously written-off receivables.

Innovative measures to boost box office collection… Key financials Eros, a leading producer/distributor with one of the largest film library of | Crore FY14 FY15 FY16E FY17E over 2000 films has entered into partnerships with three Chinese film Net Sales 1,135 1,421 1,665 1,952 EBITDA 300 349 429 531 companies to explore joint opportunities. In addition, it has also launched Net Profit 200 247 294 356 Trinity Pictures to focus on franchise films. The company released 64 EPS (|) 21.7 26.7 31.8 38.5 movies in FY15 across , Tamil/Telugu and other languages, of which 7 were high budget movies. Though the whole of FY15 was relatively weaker for the movie industry, Eros managed to grow box office Valuation summary collections (domestic and overseas) by ~27%. The company continues to FY14 FY15 FY16E FY17E get its movie selection right, evident from its presence in four out of top 8 P/E 19.2 15.6 13.1 10.8 Target P/E 23.0 18.7 15.7 13.0 box office releases in Q1FY16 also. Last year, movies such as EV / EBITDA 13.6 11.8 9.8 8.3 “Kochadaiiyaan, ‘Main Tera Hero (Overseas), ‘ (Overseas), ‘Mary P/BV 3.2 2.6 2.2 1.8 Kom (Overseas), ‘Badlapur’ turned out to be good bets. In addition, Eros RoNW 16.5 16.7 16.8 16.9 is rapidly increasing its footprint in the regional domain with movies RoCE 18.5 17.9 19.4 19.5 which has fared quite well such as Linga (Multi-lingual), (Telugu) and (Tamil) etc. Eros has an impressive movie slate for FY16, on back of its Chinese partnership intends to explore opportunities to jointly Stock data produce movies and release selective movies in China which Particular Amount Market Capitalization | 3848.4 Crore has over ~23600 screens. However, it is difficult to quantify opportunity Total Debt (FY15) | 425 Crore arising from Sino-Indian projects; hence we have not factored it in our Cash and Investments (FY15) | 169.7 Crore estimates. We expect the theatrical revenues (inclusive of overseas) to EV | 4103.7 Crore grow at a 13.8% FY15-17E CAGR to | 1265.1 crore in FY17E. 52 week H/L 404 / 149 De-risked business - Changing mix towards catalogue, satellite & ancillary Equity capital | 92.5 Crore Face value | 10 Eros generally recovers whole production cost even before theatrical release in the form of sale of music rights, satellite rights and 39%

guaranteed cost recovery from its parent for international distribution. In addition, monetization of huge movie library over pay TV, innovative box

office performance linked satellite rights and preview over premium TV

(HBO Defined and HBO Hits) will further reduce its dependence on

theatrical revenue. Non box office segment contributed life time high of

31.3% to overall collection, of which 22% was contributed by old library

monetization. We expect the collective revenues from other segments to grow at 24.2% FY15-17 CAGR to reach | 686.4 crore in FY17E, forming 35.2% of overall revenue; though we have not included revenue from Research Analyst HBO channels in our estimates. Karan Mittal [email protected] Maintain Buy with a revised target price of | 500 Agarwal In addition, Eros also enjoys a competitive advantage in terms of strong [email protected] international presence owing to its parent company Eros PLC. We expect

consolidated revenue and PAT CAGR over FY15-FY17E of 17.2% and &

20.0%. We continue to maintain BUY rating valuing it at 13.0x FY17E EPS to arrive at a target price of | 500.

ICICI Securities Ltd | Retail Equity Research

Variance analysis • Q4FY15 Q4FY15E Q4FY14 Q3FY15 YoY (%) QoQ (%) Comments Revenue 449.1 320.1 314.6 490.7 42.7 -8.5 Higher revenue aided by exceptional growth in TV revenue from library monetization and better-than-expected revenue from box office perfromance of low budget movies Other Income 16.5 1.5 -4.3 1.2 -484.7 1,233.9 Spike in other income on account of recovery from deals written off earlier

Raw Material Expenses 0.0 0.0 0.0 0.0 NA NA Employee Expenses 11.7 8.0 6.8 9.6 72.9 22.4 Administrative Expenses 56.1 14.4 13.9 22.1 304.8 153.7 High administrative expense bloated by provisions for bad debts Operating Expenses 361.0 221.4 217.0 395.3 66.4 -8.7 Higher expense partly mitigated when seen in conjuction with changes in inventory. Changes in inventories of finished goo -48.1 0.0 3.4 -83.5 -1,509.4 -42.5

EBITDA 68.2 76.3 73.6 147.2 -7.3 -53.7 EBITDA marred by higher provisioning for bad debts EBITDA Margin (%) 15.2 23.8 23.4 30.0 -819 bps -1481 bps Depreciation 1.9 1.4 1.3 1.8 48.8 3.3 Interest 8.4 9.7 14.5 9.7 -42.4 -14.1

Total Tax 22.8 18.7 14.3 27.6 59.6 -17.3 PAT 51.7 47.7 41.4 109.3 25.0 -52.7 Source: Company, ICICIdirect.com Research

Change in estimates FY16E FY17E (| Crore) Old New % Change Old New % Change Comments Revenue 1,508.6 1,665.2 10.4 1,732.0 1,951.5 12.7 Revenue estimates tweaked to factor in better library monetization and higher number of movies guided by management EBITDA 429.5 429.3 -0.1 500.1 530.9 6.2 EBITDA estimates increased for FY17 on account of higher number of movies released, however, margins lower due to increased movie cost and ammortization of previously released high cost movies EBITDA Margin (%) 28.5 25.8 -269 bps 28.9 27.2 -167 bps PAT 300.7 294.0 -2.2 354.4 355.8 0.4 EPS (|) 32.5 31.8 -2.2 38.3 38.5 0.4

Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research Page 2

Company Analysis Heavy Content Pipeline The company released 64 movies in FY15 across Hindi, Tamil/Telugu and other languages, of which 7 were high budget movies. Though the whole of FY15 was relatively weaker for the movie industry, Eros managed to grow box office collections (domestic and overseas) by ~27%. The company continues to get its movie selection right, evident from its presence in four out of top 8 box office releases in Q1FY16 also. Last year, movies such as “Kochadaiiyaan, ‘Main Tera Hero (Overseas), ‘Ek Villain (Overseas), ‘Mary Kom (Overseas), ‘Badlapur’ turned out to be good bets. In addition, Eros is rapidly increasing its footprint in the regional domain with movies which has fared quite well such as Linga (Multi-lingual), Aagadu (Telugu) and Kaththi (Tamil) etc.

Going ahead, with the robust content pipeline as shown below, we expect the theatrical revenues (inclusive of overseas) to grow at a 13.8% FY15- 17E CAGR to | 1265.1 crore in FY17E. Exhibit 1: Content Pipeline Movie name Starcast / (Director) Expected Dil Dhadkne Do (Overseas) Ranveer Singh, Farhan Akhtar, Priyanka Chopra, Anushka Sharma Q1 FY16 Life of Josutty () Dileep, Jyothi , Rachana Narayankutty (Jetthu Joseph) Q1 FY16 Bajrangi Bhaijaan , Kareena Kapoor (Kabir Khan) Q1 FY16 Rajini Murugan (Tamil) Sivakarthikeyan (Ponram) Q2 FY16 Bangistan (Overseas) Ritesh Deshmukh, Pulkit Samrat, Jaqliene Fernandis Q2 FY16 Hero Sooraj Pancholi, Adheya Shetty (Nikhil Advani) Q2 FY16 Singh is Bling (Overseas) Akshay Kumar, Kareena Kapoor, Amy Jackson (Prabhu Deva) Q3 FY16 Bajirao Mastani Ranveer Singh, (Sanjay Leela Bhansali) Q3 FY16 Gabbar Singh 2 (Telugu) (K. S. Ravindra) Q4 FY16 Aligarh Kangana Ranaut (Hansal Mehta) Q4 FY16 Dictator (Telugu) Balakrishna (Srivaas) Q4 FY16 Naale (Malayalam) Fahad Fazil, Malavika S Mohan, Isha Talwar, Mukesh Q4 FY16 Perai Thedai Natkal (Tamil) Ashok Selvan (Abraham Prabhu) Q4 FY16 EnkittaMothathe (Tamil) Natarajan Subramaniyam Rajaji, Vijay Murugan and Radha Ravi Q4 FY16 Housefull 3 Akshay Kumar, Abhishekh Bachchan, Rietesh Deshmukh FY17 Shivay Devgn (Ajay Devgn) FY17 Untitled Kajol (Ajay Devgan Productions) FY17 Farzi Shahid Kapoor, Kiriti Sanon (Raj Nidimoru and Krishna D.K.) FY17 Banjo Riteish Deshmukh, (Ravi Jadhav) FY17 Raabta Sushant Singh Rajput (Dinesh Vijayan and Homi Adjania) FY17 Chaar Sahibzaade 2 Sequel to the film FY17 Guru Teg Bahadur Directed by Harry Baweja FY17 Jugaadu Harman Baweja and others FY17 Untitled Saif Ali Khan (3 movies) FY17

Source: Company, ICICIdirect.com Research

Foraying into the Chinese market Eros has entered into has entered into partnerships with three Chinese film companies to explore joint opportunities such as promote, co- produce, distribute and unlock value in respective intellectual properties for Sino-Indian films across all platforms in both the countries.

Foreign films, mainly from Hollywood, accounted for about 45% of total Chinese box office on a strict quota of 34 movies, with the rest coming from over 600 local Chinese films and displayed in China which has about 23600 screens. The company recently announced its first ever Sino-Indian film project, DA TANG XUAN ZANG (Monk Xuanzang) in collaboration with Chinese state owned production company, Chinese Film Corporation. Though the region provides ample growth prospects, it is

ICICI Securities Ltd | Retail Equity Research Page 3

difficult to quantify opportunity arising from Sino-Indian projects; hence we have not factored it in our estimates. EBITDA margin The EBITDA margins would improve as the share of the high margin catalogue and other ancillary revenues increase. In addition, the higher satellite revenues would also keep the EBITDA margins buoyed. We expect the margins to reach 27.2% by FY17E.

Exhibit 2: EBITDA & PAT margin trend

27.2 30.0 26.4 25.8 24.5 25.0 21.2

20.0 17.6 17.4 17.7 18.2

% 15.0 14.5 10.0

5.0

- FY13 FY14 FY15 FY16E FY17E

EBITDA margin PAT margin

Source: Company, ICICIdirect.com Research

GST if implemented would lead to EBITDA margin expansion Varying entertainment tax rate across states impacts EBITDA margins. Implementation of GST would immensely reduce entertainment tax which can aid EBITDA margins by 100-200 bps

ICICI Securities Ltd | Retail Equity Research Page 4

Valuation In addition, Eros also enjoys a competitive advantage in terms of strong international presence owing to its parent company Eros PLC. We expect consolidated revenue and PAT CAGR over FY15-FY17E of 17.2% and & 20.0%. We continue to maintain BUY rating valuing it at 13.0x FY17E EPS to arrive at a target price of | 500. Exhibit 3: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY14 1134.7 6.2 21.7 29.2 19.2 13.6 16.5 18.5 FY15 1421.2 25.2 26.7 23.0 15.6 11.8 16.7 17.9 FY16E 1665.2 17.2 31.8 19.0 13.1 9.8 16.8 19.4 FY17E 1951.5 17.2 38.5 21.0 10.8 8.3 16.9 19.5 Source: Company, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research Page 5

Company snapshot

600 Target Price: 500 500

400

300

200

100

0 Oct-15 Oct-14 Oct-13 Oct-12 Oct-11 Oct-10 Apr-16 Apr-15 Apr-14 Apr-13 Apr-12 Apr-11 Feb-16 Feb-15 Feb-14 Feb-13 Feb-12 Feb-11 Jun-15 Jun-14 Jun-13 Jun-12 Jun-11 Dec-15 Dec-14 Dec-13 Dec-12 Dec-11 Dec-10 Aug-15 Aug-14 Aug-13 Aug-12 Aug-11

Source: Bloomberg, Company, ICICIdirect.com Research

Key events Date Event Oct-10 The company was converted into a public limited company and the name was changed to Eros International Media Ltd Nov-11 Eros International's Rockstar records a hugely successful opening weekend collection of | 64 crore gross worldwide May-12 Launches online entertainment service, ‘Eros Now’ to offer digitised Bollywood film content Sep-12 Eros International ties up with HBO Asia to launch two movie channels Sep-13 Eros gains as parent Eros International PLc files update for IPO listing with the SEC Nov-13 Temasek's Fullerton buys stake in Indian film distributor through Eros International Plc ganing a foothold in the local movie industry, Bollywood Dec-13 Movies like Yeh Jawani Hai Deewani, Ram-Leela and R. Rajkumar fare exceedingly well at the box office Dec-13 Eros International Media Ltd (Eros International) forays into the Telugu market by co-producing 's '1' Nenokkadine. Produced by 14 Reels Entertainment and Eros, the upcoming action thriller released on January 10, 2014 May-14 Rajnikanth's Kochadaiyaan hits the box-office and grosses | 42 crore worldwide in the opening weekend Aug-14 Acquires mobile VAS player Techzone to manage billing and marketing of its digital offerings through Eros Now across mobile platforms May-15 Signed landmark deals with three major most-respected Chinese state owned film and entertainment companies to promote, co-produce, distribute and unlock value in respective intellectual properties for Sino-Indian films across all platforms in both the countries through co-productions, dubbed releases and remakes.

Source: Company, ICICIdirect.com Research

Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m) (in %) Mar-14 Jun-14 Sep-14 Dec-14 Mar-15 1 Eros Worldwide FZ, L.L.C. 31-Dec-14 50.93 47.1 0.0 Promoter 74.84 74.76 74.52 74.41 74.41 2 Eros Digital Pvt. Ltd. 31-Dec-14 23.45 21.7 0.0 FII 12.85 16.15 17.78 18.15 19.48 3 Handelsbanken Asset Management 30-Apr-15 2.70 2.5 0.0 DII 1.18 1.23 1.24 1.16 0.99 4 Norges Bank Investment Management (NBIM) 31-Dec-14 2.47 2.3 -0.3 Others 11.13 7.86 6.46 6.28 5.12 5 Jupiter Asset Management Ltd. 31-Mar-15 1.97 1.8 0.2 6 Danske Capital 31-Dec-14 1.50 1.4 -0.1 7 Indus Capital Partners, LLC 31-Dec-14 1.45 1.3 -1.0 8 Deutsche Bank AG 31-Dec-14 1.15 1.1 1.1 9 Dimensional Fund Advisors, L.P. 30-Apr-15 1.03 1.0 0.0 10 Manulife Asset Management (Asia) 30-Jun-14 0.66 0.6 0.6

Source: Reuters, ICICIdirect.com Research

Recent Activity Buys Sells Investor name Value Shares Investor name Value Shares Deutsche Bank AG 6.22m 1.06m Indus Capital Partners, LLC -5.60m -0.96m Manulife Asset Management (Asia) 2.40m 0.61m Morgan Stanley Investment Management () Pvt. Ltd. -1.84m -0.32m Octopus Investments Limited 1.30m 0.20m Norges Bank Investment Management (NBIM) -0.79m -0.31m Jupiter Asset Management Ltd. 1.18m 0.18m Principal PNB Asset Management Company Ltd. -0.55m -0.20m Daiwa Asset Management Co., Ltd. 0.43m 0.07m Danske Capital -0.51m -0.14m tekle Source: Reuters, ICICIdirect.com Research

ICICI Securities Ltd | Retail Equity Research Page 6

Financial summary

Profit and loss statement | Crore Cash flow statement | Crore (Year-end March) FY14 FY15 FY16E FY17E (Year-end March) FY14 FY15 FY16E FY17E Total operating Income 1,134.7 1,421.2 1,665.2 1,951.5 Profit after Tax 199.7 247.1 294.0 355.8 Growth (%) 6.2 25.2 17.2 17.2 Add: Depreciation & Amortization 5.0 6.9 6.2 6.6 Operating Expenses 773.3 940.0 1,122.7 1,284.0 Add: Interest Paid 32.7 38.4 34.0 45.6 Employee Expenses 28.2 35.9 46.6 58.5 (Inc)/dec in Current Assets 54.2 -586.4 141.5 -50.9 Administrative Expenses 33.5 96.7 66.6 78.1 Inc/(dec) in CL and Provisions 128.4 709.2 130.4 211.9 Total Operating Expenditure 834.9 1,072.6 1,235.9 1,420.6 CF from operating activities 420.0 415.1 606.1 569.0 EBITDA 299.8 348.6 429.3 530.9 (Inc)/dec in Fixed Asset -393.8 -619.4 -636.7 -735.4 Growth (%) 32.5 16.3 23.2 23.7 Others -33.1 189.7 2.4 2.9 Depreciation 5.0 6.9 6.2 6.6 CF from investing activities -427.0 -429.8 -634.3 -732.5 Interest 32.7 38.4 34.0 45.6 Issue/(Buy back) of Equity 0.0 0.5 0.0 0.0 Other Income 5.0 19.9 6.0 6.0 Inc/(dec) in loan funds -0.9 41.8 0.0 145.0 PBT 267.0 323.2 395.1 484.7 Dividend & dividend tax - - - - Total Tax 73.7 76.2 98.8 126.0 Interest Paid 32.7 38.4 34.0 45.6

Minority Interest (6.4) (0.1) 2.4 2.9 Others -10.4 -12.4 -60.0 -45.6 PAT 199.7 247.1 294.0 355.8 CF from financing activities -11.2 29.9 -60.0 99.4 Growth (%) 29.3 23.7 19.0 21.0 Net Cash flow -18.1 15.3 -88.3 -64.1 EPS (|) 21.7 26.7 31.8 38.5 Opening Cash 172.5 154.4 169.7 81.4

Closing Cash 154.4 169.7 81.4 17.3 Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

Balance sheet | Crore Key ratios (Year-end March) FY14 FY15 FY16E FY17E (Year-end March) FY14 FY15 FY16E FY17E Liabilities Per share data (|) Equity Capital 92.0 92.5 92.5 92.5 EPS 21.7 26.7 31.8 38.5 ESOP's - - - - Cash EPS 22.3 27.5 32.4 39.2 Reserve and Surplus 1,116.7 1,389.7 1,657.7 2,013.5 BV 131.4 160.2 189.2 227.6 Total Shareholders funds 1,208.6 1,482.2 1,750.2 2,106.0 DPS 0.0 0.0 0.0 0.0 Total Debt 383.2 425.0 425.0 570.0 Cash Per Share 16.8 18.3 8.8 1.9 Other Non Current Liabilities 208.6 259.2 261.6 264.4 Operating Ratios (%)

Total Liabilities 1,800.4 2,166.4 2,436.7 2,940.4 EBITDA Margin 26.4 24.5 25.8 27.2 PBT / Total Operating income 23.5 22.7 23.7 24.8

Assets PAT Margin 17.6 17.4 17.7 18.2

Gross Block 2,909.3 3,113.6 3,949.1 4,843.5 Inventory days 1.3 35.2 31.6 27.7 Less: Acc Depreciation 1,868.5 1,875.4 1,881.6 1,888.1 Debtor days 66.0 135.0 75.0 70.0 Net Block 1,040.8 1,238.2 2,067.5 2,955.4 Creditor days 117.6 277.7 265.0 265.0 Capital WIP 578.9 994.1 795.2 636.2 Return Ratios (%) Total Fixed Assets 1,619.7 2,232.2 2,862.8 3,591.6 RoE 16.5 16.7 16.8 16.9 Investments 8.0 0.0 0.0 0.0 RoCE 18.5 17.9 19.4 19.5 Inventory 4.0 136.9 144.4 148.1 RoIC 27.6 34.1 27.1 22.9 Debtors 205.3 525.7 342.2 374.3 Valuation Ratios (x) Loans and Advances 61.9 184.0 215.5 227.3 P/E 19.2 15.6 13.1 10.8 Other Current Assets 5.3 16.3 19.3 22.6 EV / EBITDA 13.6 11.8 9.8 8.3 Cash 154.4 169.7 81.4 17.3 EV / Net Sales 3.6 2.9 2.5 2.3 Total Current Assets 430.8 1,032.6 802.8 789.6 Market Cap / Sales 3.4 2.7 2.3 2.0

Creditors 365.5 1,081.1 1,209.0 1,416.9 Price to Book Value 3.2 2.6 2.2 1.8 Provisions 27.5 21.1 23.6 27.7 Solvency Ratios Total Current Liabilities 393.0 1,102.2 1,232.6 1,444.5 Debt/EBITDA 1.3 1.2 1.0 1.1 Net Current Assets 37.8 -69.6 -429.9 -655.0 Debt / Equity 0.3 0.3 0.2 0.3 Other Non Current Assets 134.9 3.8 3.8 3.8 Current Ratio 1.1 0.9 0.7 0.5 Deffered tax assets - - - - Quick Ratio 1.1 0.8 0.5 0.4

Application of Funds 1,800.4 2,166.4 2,436.7 2,940.4 Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

.

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ICICIdirect.com coverage universe (Media)

CMP M Cap EPS (|) P/E (x) EV/EBITDA (x) RoCE (%) RoE (%) Sector / Company (|) TP(|) Rating (| Cr) FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E FY15 FY16E FY17E DB Corp (DBCORP) 337 410 Buy 6,192 17.2 20.3 24.1 19.6 16.6 14.0 10.9 9.1 7.5 34.2 32.8 32.3 24.6 23.5 23.3 DISH TV (DISHTV) 98 120 Buy 10,385 0.0 1.3 NA NA NA NA 15.6 12.6 NA 10.1 21.5 NA NM NM NA ENIL (ENTNET) 669 683 Hold 3,191 22.2 23.2 27.3 30.1 28.9 24.5 19.0 17.6 13.3 16.7 14.9 17.0 15.7 14.1 14.3 Eros (EROINT) 416 500 Buy 3,848 26.7 31.8 NA 15.6 13.1 NA 11.8 9.8 NA 17.9 19.4 NA 16.7 16.8 NA Hathway Cables (HATCAB) 50 54 Hold 4,152 -2.2 -1.9 -1.1 NM NM NM 21.2 16.4 13.062 NM 0.4 2.7699 NM NM -9.6 HT Media (HTMED) 97 105 Hold 2,282 7.7 9.4 10.5 12.6 10.3 9.2 8.3 5.9 4.3 6.9 8.8 9.4 9.5 10.2 10.3 Inox Leisure (INOX) 163 210 Buy 1,567 2.2 4.7 9.8 74.7 34.5 16.6 14.4 11.1 7.4 5.3 7.3 12.8 3.0 6.0 11.1 PVR (PVRLIM) 669 780 Buy 2,658 3.1 10.5 19.9 217.9 63.7 33.7 16.1 12.9 10.6 7.9 11.3 13.5 3.1 9.4 15.4 Sun TV (SUNTV) 355 394 Hold 13,980 19.8 23.4 28.1 17.9 15.2 12.6 7.7 6.8 5.7 30.4 33.2 35.4 22.7 24.9 26.7 TV Today (TVTNET) 175 240 Buy 1,041 13.6 15.0 18.4 12.9 11.6 9.5 8.5 7.0 5.2 22.6 22.6 24.0 18.0 17.0 17.9 ZEE Ent. (ZEETEL) 327 335 Hold 31,402 10.2 9.6 11.6 32.1 34.0 28.3 23.8 23.9 19.2 21.4 18.6 19.1 17.6 15.0 15.2 Source: Company, ICICIdirect.com Research

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RATING RATIONALE ICICIdirect.com endeavours to provide objective opinions and recommendations. ICICIdirect.com assigns ratings to its stocks according to their notional target price vs. current market price and then categorises them as Strong Buy, Buy, Hold and Sell. The performance horizon is two years unless specified and the notional target price is defined as the analysts' valuation for a stock.

Strong Buy: >15%/20% for large caps/midcaps, respectively, with high conviction; Buy: >10%/15% for large caps/midcaps, respectively; Hold: Up to +/-10%; Sell: -10% or more;

Pankaj Pandey Head – Research [email protected]

ICICIdirect.com Research Desk, ICICI Securities Limited, 1st Floor, Akruti Trade Centre, Road No 7, MIDC, Andheri (East) – 400 093 [email protected]

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ANALYST CERTIFICATION We /I, Karan Mittal, MBA Sneha Agarwal, MBA Research Analysts, authors and the names subscribed to this report, hereby certify that all of the views expressed in this research report accurately reflect our views about the subject issuer(s) or securities. We also certify that no part of our compensation was, is, or will be directly or indirectly related to the specific recommendation(s) or view(s) in this report. Terms & conditions and other disclosures: ICICI Securities Limited (ICICI Securities) is a full-service, integrated investment banking and is, inter alia, engaged in the business of stock brokering and distribution of financial products. ICICI Securities is a wholly-owned subsidiary of ICICI Bank which is India’s largest private sector bank and has its various subsidiaries engaged in businesses of housing finance, asset management, life insurance, general insurance, venture capital fund management, etc. (“associates”), the details in respect of which are available on www.icicibank.com.

ICICI Securities is one of the leading merchant bankers/ underwriters of securities and participate in virtually all securities trading markets in India. We and our associates might have investment banking and other business relationship with a significant percentage of companies covered by our Investment Research Department. ICICI Securities generally prohibits its analysts, persons reporting to analysts and their relatives from maintaining a financial interest in the securities or derivatives of any companies that the analysts cover.

The information and opinions in this report have been prepared by ICICI Securities and are subject to change without any notice. The report and information contained herein is strictly confidential and meant solely for the selected recipient and may not be altered in any way, transmitted to, copied or distributed, in part or in whole, to any other person or to the media or reproduced in any form, without prior written consent of ICICI Securities. While we would endeavour to update the information herein on a reasonable basis, ICICI Securitiesis is under no obligation to update or keep the information current. Also, there may be regulatory, compliance or other reasons that may prevent ICICI Securities from doing so. Non-rated securities indicate that rating on a particular security has been suspended temporarily and such suspension is in compliance with applicable regulations and/or ICICI Securities policies, in circumstances where ICICI Securities might be acting in an advisory capacity to this company, or in certain other circumstances.

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ICICI Securities encourages independence in research report preparation and strives to minimize conflict in preparation of research report. ICICI Securities or its analysts did not receive any compensation or other benefits from the companies mentioned in the report or third party in connection with preparation of the research report. Accordingly, neither ICICI Securities nor Research Analysts have any material conflict of interest at the time of publication of this report.

It is confirmed that Karan Mittal, MBA Sneha Agarwal, MBA, Research Analysts of this report have not received any compensation from the companies mentioned in the report in the preceding twelve months.

Compensation of our Research Analysts is not based on any specific merchant banking, investment banking or brokerage service transactions.

ICICI Securities or its subsidiaries collectively or Research Analysts do not own 1% or more of the equity securities of the Company mentioned in the report as of the last day of the month preceding the publication of the research report.

Since associates of ICICI Securities are engaged in various financial service businesses, they might have financial interests or beneficial ownership in various companies including the subject company/companies mentioned in this report.

It is confirmed that Karan Mittal, MBA Sneha Agarwal, MBA, Research Analysts do not serve as an officer, director or employee of the companies mentioned in the report.

ICICI Securities may have issued other reports that are inconsistent with and reach different conclusion from the information presented in this report.

Neither the Research Analysts nor ICICI Securities have been engaged in market making activity for the companies mentioned in the report.

We submit that no material disciplinary action has been taken on ICICI Securities by any Regulatory Authority impacting Equity Research Analysis activities.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction, where such distribution, publication, availability or use would be contrary to law, regulation or which would subject ICICI Securities and affiliates to any registration or licensing requirement within such jurisdiction. The securities described herein may or may not be eligible for sale in all jurisdictions or to certain category of investors. Persons in whose possession this document may come are required to inform themselves of and to observe such restriction.

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