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Home , Aagadu, Dishoom, Housefull 3, Huma Qureshi (actress), Katrina Kaif, Riteish Deshmukh

Result Update June 2, 2016

Rating matrix Rating : Hold Eros International (EROINT) | 206 Target : | 225 Target Period : 12 months Improving clarity on transfer pricing… Potential Upside : 9% • Revenues were expected to be subdued in the quarter as it had no What’s changed? big budget movie release. During the quarter, there were six medium Target Changed from 164 to | 225 and six low budget movies, respectively. Hence, revenues came in at EPS FY17E Changed from | 23.8 to | 25.2 | 269.9 crore, down 39.9% YoY and 19.5% QoQ EPS FY18E Introduced at | 28.2 • EBITDA came in at | 32.1 crore vs. our expectation of | 37.9 crore Rating Unchanged while margins came in at 11.9% (estimated 14.9%). Margins came in Quarterly performance lower than estimated owing to higher-than-expected operating Q4FY16 Q4FY15 YoY (%) Q3FY16 QoQ (%) expenses, which came in at | 208.3 crore vs. estimate of | 199 crore Revenue 269.9 449.1 -39.9 335.4 -19.5 • PAT came in at | 32.7 crore, higher than our estimate of | 21.9 crore. EBITDA 32.1 68.2 (52.9) 66.8 -52.0 The beat was due to tax credit of | 5 crore EBITDA (%) 11.9 15.2 -329 bps 19.9 -803 bps Leading producer/distributor with one of the largest film libraries PAT 32.7 51.7 (36.8) 37.8 -13.4 Eros, a producer/distributor, has a large film library of over 2000 films. Key financials Also, it has launched Trinity Pictures to focus on franchise films. The first | Crore FY15 FY16 FY17E FY18E movie from the arm is likely to get released by FY18E. The company Net Sales 1,421 1,583 1,849 2,158 released 63 movies in FY16 across , Tamil/Telugu and other EBITDA 349 324 423 499 languages, of which six were high budget movies. Eros continues to get Net Profit 247 214 236 264 its movie selection right and boasts of blockbusters such as Bajrangi EPS (|) 26.7 22.9 25.2 28.2

Bhaijaan, , Tanu Weds Manu Returns from its stable. Hence, FY16 saw 28.0% YoY growth in domestic theatrical revenues to Valuation summary | 693.2 crore. With a strong movie slate with movies like 3, FY15 FY16 FY17E FY18E P/E 7.7 9.0 8.2 7.3 , Banjo, Rock On 2 in the pipeline, we expect domestic theatrical Target P/E 8.4 9.8 8.9 8.0 revenues of | 65 1.0 crore & | 684.6 crore in FY17E & FY18E, respectively. EV / EBITDA 6.3 6.1 5.6 5.4 Reduced receivables, B/S improves, catalogue sales to rise P/BV 1.3 1.1 1.0 0.9 Catalogue revenues have longer payment cycles associated with them. In RoNW 16.7 12.1 12.4 12.2 FY16, the company had deferred sales for a couple of quarters to enable RoCE 16.7 14.0 14.7 14.8 the receivables position to normalise. Eros was indeed able to bring down Stock data receivables from | 525.7 crore (FY15) to | 428.2 crore (FY16). Hence, the Particular Amount number of days has come down from 135 to 98 over the same period. Market Capitalization (| Crore) 1,932.0 Eros indicated there were renewed deals with shorter payment cycles Total Debt (FY15) (| Crore) 425.0 while catalogue revenues would again rebound to 20% and 25% of Cash (FY15) (| Crore) 169.7 revenues in FY17E and FY18, respectively, from 15.0% in FY16. There EV 2,187.3 could be some addition from lost revenues in the coming year. We have 52 week H/L 644 / 126 re-aligned our estimates in line with the guidance. Equity capital 92.5 Face value 10 Delivering on clearer transfer pricing terms…

Eros has made certain changes in its existing arrangement with Eros International Plc. The transfer of overseas rights including global digital

media rights to Eros International Plc, would not be at an amount equal to

40% of the production cost of each film with an additional mark-up of

20% vs. 30% of production cost with a 30% mark-up earlier. It will also

alter the amortisation of a new film produced to 76% of content cost in the first year from 72%. We have changed our estimates accordingly.

Additionally, Eros will hold an equity stake of 10-15% in the global

digital business structure at a marginal cost. Hence, Eros India can

participate in the long term value creation of the ErosNow business, any

stake divestment, IPO, etc. We have, however, not assigned any value to

Eros Now currently as revenues remain marginal/unclear as of now. Improving business fundamentals; revise target price, maintain HOLD Research Analyst The company has done its best to come clear of the recent allegations. Bhupendra Tiwary The new transfer pricing mechanism is an added positive. However, [email protected] clarity on the Eros Now potential and rationale for 10-15% stake would Sneha Agarwal have been better. We re-align our estimates incorporating the changes [email protected] from the revised transfer pricing arrangement valuing Eros at 8x FY18E EPS to arrive at a target price of | 225. We maintain HOLD.

ICICI Securities Ltd | Retail Equity Research

Variance analysis Q4FY16 Q4FY16E Q4FY15 Q3FY16 YoY (%) QoQ (%) Comments Revenue 269.9 266.3 449.1 335.4 -39.9 -19.5 The quarter had no major high budget releases. Some of the catalogue revenues were also done away with to improve the receivables situation in the balance sheet Other Income 4.8 3.0 16.5 2.9 -70.8 68.9

Raw Material Expenses 0.0 0.0 0.0 0.0 NA NA Employee Expenses 16.5 12.0 11.7 14.1 40.1 16.5 Administrative Expenses 9.9 17.3 56.1 24.3 -82.3 -59.3 Operating Expenses 208.3 199.0 361.0 232.1 -42.3 -10.2 The content costs of the movies was slightly higher than expectations

Changes in inventories of finished goo 3.1 0.0 -48.1 -2.0 -106.5 -257.4

EBITDA 32.1 37.9 68.2 66.8 -52.9 -52.0 The operating expenses came in higher-than-expected owing to higher operating expenses EBITDA Margin (%) 11.9 14.3 15.2 19.9 -329 bps -803 bps Margins are lower on a YoY basis due to lower catalogue revenues

Depreciation 2.4 0.9 1.9 2.0 29.6 18.1 Interest 7.0 8.4 8.4 7.9 -16.2 -11.6

Total Tax -5.0 9.5 22.8 22.1 -121.7 -122.4 PAT 32.7 21.9 51.7 37.8 -36.8 -13.4 Higher other income and a income tax benefit has led to higher other income

Source: Company, ICICIdirect.com Research

Change in estimates FY17E FY18E (| Crore) Old New % Change Introduced Comments Revenue 1,858.8 1,848.6 -0.6 2,157.5 We have further reduced our catalogue revenue estimates for FY17E in line with the management's commentary on revenues to be ~20% of overall revenues. The decline was offset by the increase in transfer pricing arrangement wherein overseas revenues have now come in at 40% of cost and an additonal 20% mark up vs. 30.0% of cost and addtional 30.0% mark-up

EBITDA 420.8 423.4 0.6 498.9 EBITDA Margin (%) 22.6 22.9 27 bps 23.1 PAT 222.7 235.6 5.8 263.8 The interest burden has reduced owing to debt reduction in FY16, which is aiding PAT EPS (|) 23.8 25.2 5.8 28.2

Source: Company, ICICIdirect.com Research

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Company Analysis Content pipeline The company released 63 movies in FY16 across Hindi, Tamil/Telugu and other languages, of which six were high budget, 16 were medium budget and 41 low budget movies. The company continues to get its movie selection right, evident from its presence in three out of top four box office releases. Bajrangi Bhaijaan, Bajirao Mastani, Tanu Weds Manu Returns and Back were superhits in FY16. In addition, Eros is rapidly increasing its footprint in the regional domain with movies that have fared quite well such as (Telugu), Lingaa (multi- lingual), (Telugu), Kaththi (Tamil), etc.

Hence, FY16 saw 28.0% YoY growth in domestic theatrical revenues to | 693.2 crore. With the strong movie slate with movies such as , Dishoom, Banjo, Rock On 2 in the pipeline, we expect domestic theatrical revenues of | 651.0 crore & | 684.6 crore in FY17E & FY18E, respectively.

Exhibit 1: Content pipeline till FY17E Movie name Starcast / (Director) Expected Housefull 3 , Riteish , Abhishek / (Nadiadwala / Sajid Farhad) Q1FY17 Ganvesh Kishore Kadam, Mukta Barve, Dilip, Smita / (Atu Jagdale) Q1FY17 & Jara Hatke Indraneil Sengupta & Mrinal Kulkarni / (Ravi Jadhav) Q1FY17 White , Huma Qureshi, Shankar Ramakrishnan / (Uday Amanthan) Q1FY17 Saat Kadam Amit Sadh, Deeksha Seth, / (Mohit Jha) Q1FY17 Naale Fahad Fazil, Malavika S Mohan, Isha Talwar, Mukesh (Shiju S Bawa) Q2FY17 Happy Bhaag Jayegi & Diana Penty / (Colour Yellow / Mudassar Aziz) Q2FY17 Dishoom , , Jackie Fernandez / (Nadiadwala / Rohit Dhawan Q2 FY17 Banjo & / (Ravi Jadhav) Q2 FY17 Siddharth Malhotra & Katrina Kaif / (Dharma / Nitya Mehra) Q2 FY17 Ticket to Amyra Dastoor, Diganth Manchale / (Eros) Q2 FY17 Enkitta Mothathey Nutty, Sanchitha Shetty, Parvathy/ RV Films / Ramu Chellapa Q2 FY17 Kai Neelam Vijay Sethupathy, Samuthrakani & Others (Nalan Kumaraswamy) Q3 FY17 Manmarziyan Ayushmann Khuranna & / (Colour Yellow) Q3 FY17 Shivaay Devgn / () Q3 FY17 Rock On 2 , / (Excel / Shujaat Saudagar) Q3 FY17 Chaar Sahibzaade 2 3D Animation / (Harry Baweja) Q4 FY17 Guru Tegh Bahadur 3D Animation / (Harry Baweja) FY17 3 , and / (Studio Green / Aadnah Arts) FY17 Untitled / (Aadnah Arts / Lingusamy) FY17 Oru Kidayin Karunai Mamu (Ramu Chellapa) FY17

Source: Company, ICICIdirect.com Research

Reduced receivables, B/S improves, Catalogue sales to rise Catalogue revenues have longer payment cycles associated with them. In FY16, the company had deferred sales for a couple of quarters to enable the receivables position to normalise. Eros was indeed able to bring down receivables from | 525.7 crore (FY15) to | 428.2 crore (FY16). Hence, the number of days has come down from 135 to 98 over the same period. Eros indicated that there were renewed deals with shorter payment cycles and catalogue revenues would again rebound to 20% and 25% of revenues in FY17E and FY18, respectively, from 15.0% in FY16. There could be some addition from lost revenues in the coming year. We have re-aligned our estimates in-line with the guidance.

ICICI Securities Ltd | Retail Equity Research Page 3

Transfer pricing arrangement with parent improves, de-risks 48% of revenues Based on a detailed transfer pricing study by a Big 4 Accounting firm, the company has made certain changes in its existing relationship agreement with its parent Eros International Plc. Consequently, the company will transfer the overseas rights including global digital media rights to Eros International Plc, or its subsidiaries at an amount equal to 40% of production cost of each film with an additional mark-up of 20% vs. 30% of production cost at an additional 30% mark-up earlier.

If a movie costs | 100 crore, the parent will be billed for | 48 crore (| 100 crore*40%*1.2), henceforth, vs. | 39 crore (| 100 crore*30%*1.3) initially. The arrangement leads to additional revenues from overseas rights (~23% higher than the earlier arrangement). The deal also leads to certain changes in the amortisation schedule. The cost of movie production will be amortised to the extent of 76% in the first year in this arrangement vs. 72% earlier. The absolute EBITDA impact from the change in arrangement is | 5.0 crore.

Additionally, the Eros India group will hold an equity stake of 10-15% of the global digital business structure to participate in the long term value creation of the ErosNow business, any future value enhancement, stake divestment, IPO, etc. Foraying into Chinese market Eros has entered into partnerships with three Chinese film companies to explore joint opportunities such as promotion, co-production, distribution and unlocking value in respective intellectual properties for Sino-Indian films across all platforms in both 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 Xuan Zang) in collaboration with Chinese state owned production company, Chinese Film Corporation. Though the region provides ample growth prospects, it is difficult to quantify the opportunity arising from Sino-Indian projects. The company is looking forward to the release of Bajirao Mastani in Chinese markets. Hence, we have not factored it in our estimates.

Balance sheet improvement on track… The company saw a sharp correction in its stock led by rising concerns over accounting practices followed by the parent company, the stark increase in receivables owing to increased business exposure to UAE, validation of the Eros Now user base and the future cash flow viability. The company had then guided about marked improvement in its receivables situation and better free cash flow generation.

The total receivables were at | 428.2 crore in FY16 compared to | 525.7 crore in FY15. In terms of debtor days, receivables improved to 97.5 days as on March 31, 2016 vs. 133 days on March 31, 2015. Hence, Eros has been able to generate healthy free cash flow of | 300 crore compared to negative | 5.0 crore in FY2015. This demonstrates the working capital efficiencies the company was able to effect. The net debt/equity ratio also saw an improvement to 0.06 in FY16 compared to 0.21 as on FY15.

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Valuation The company has done its best to come clear from the recent allegations. The new transfer pricing mechanism is an added positive. However, clarity on the Eros Now potential and rationale for 10-15% stake would have been better. We re-align our estimates incorporating the changes from the revised transfer pricing arrangement valuing Eros at 8.0x FY18E EPS to arrive at a target price of | 225. We maintain HOLD rating.

Exhibit 2: Valuations Sales Growth EPS Growth PE EV/EBITDA RoNW RoCE (| cr) (%) (|) (%) (x) (x) (%) (%) FY15 1421.2 25.2 26.7 23.0 7.7 6.3 16.7 16.7 FY16 1582.7 11.4 22.9 -14.3 9.0 6.1 12.1 14.0 FY17E 1848.6 16.8 25.2 10.0 8.2 5.6 12.4 14.7 FY18E 2157.5 16.7 28.2 12.0 7.3 5.4 12.2 14.8

Source: Company, ICICIdirect.com Research

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Company snapshot

700

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300 Target Price | 225

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0 Jul-11 Jul-12 Jul-13 Jul-14 Jul-15 Jul-16 Oct-11 Oct-12 Oct-13 Oct-14 Oct-15 Oct-16 Apr-11 Apr-12 Apr-13 Apr-14 Apr-15 Apr-16 Apr-17 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17

Source: Bloomberg, Company, ICICIdirect.com Research

Key events Date Event Oct-10 Company converted into public limited company. Name changed to Eros International Media Ltd Nov-11 Eros International's Rockstar records 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-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 (Eros International) forays into the Telugu market by co-producing 's '1 ' Nenokkadine . Produced by 14 Reels Entertainment and Eros, the upcoming action thriller releases on January 10, 2014 Aug-14 Acquires mobile VAS player Techzone to manage billing and marketing of its digital offerings through Eros Now across mobile platforms May-15 Signs deals with three major 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 Oct-15 The stock of the parent company faces several downgrades by some renowned investment banks on concerns relating to the increase in recievables, cash flows and increasing exposure to the UAE. In addition, some of the investment blogs highlight several accounting related inconsistencies in the financials of the company leading to such a massive slump in the stock price

Source: Company, ICICIdirect.com Research

Top 10 Shareholders Shareholding Pattern Rank Name Latest Filing Date % O/S Position (m) Change (m) (in %) Mar-15 Jun-15 Sep-15 Dec-15 Mar-16 1 Eros Worldwide FZ, L.L.C. 31-Mar-16 50.4 47.1 0.0 Promoter 74.41 74.37 73.66 73.57 73.55 2 Eros Digital Pvt. Ltd. 31-Mar-16 23.2 21.7 0.0 FII 19.48 18.26 20.48 13.21 11.34 3 Norges Bank Investment Management (NBIM) 31-Mar-16 2.31 2.2 0.4 DII 0.99 2.39 0.08 0.14 0.14 4 Jupiter Asset Management Ltd. 29-Feb-16 1.4 1.3 0.0 Others 5.12 4.98 5.78 13.08 14.97 5 Dimensional Fund Advisors, L.P. 31-Mar-16 1.2 1.1 0.0 6 Grandeur Peak Global Advisors, LLC 31-Jan-16 0.6 0.5 0.2 7 Octopus Investments Limited 30-Apr-15 0.5 0.4 0.2 8 Van Eck Associates Corporation 30-Apr-16 0.2 0.2 0.0 9 Daiwa Asset Management Co., Ltd. 6-Jul-15 0.2 0.2 0.0 10 Handelsbanken Asset Management 30-Apr-16 0.1 0.1 -0.1

Source: Reuters, ICICIdirect.com Research

Recent Activity Buys Sells Investor name Value Shares Investor name Value Shares Norges Bank Investment Management (NBIM) +0.96M +0.38M Putnam Investment Management, L.L.C. -0.47M -0.13M Grandeur Peak Global Advisors, LLC +0.60M +0.24M Russell Investments Limited -0.33M -0.12M Schroder Investment Management Ltd. (SIM) +0.18M +0.05M Old Mutual Global Investors (UK) Limited -0.28M -0.08M Jupiter Asset Management Ltd. +0.08M +0.04M OppenheimerFunds, Inc. -0.35M -0.08M Van Eck Associates Corporation +0.07M +0.03M Handelsbanken Asset Management -0.18M -0.07M tekle Source: Reuters, ICICIdirect.com Research

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Financial summary

Profit and loss statement | Crore Cash flow statement | Crore (Year-end March) FY15 FY16 FY17E FY18E (Year-end March) FY15 FY16 FY17E FY18E Total operating Income 1,421.2 1,582.7 1,848.6 2,157.5 Profit after Tax 247.1 214.2 235.6 263.8 Growth (%) 25.2 11.4 16.8 16.7 Add: Depreciation & Amortization 6.9 7.5 8.3 10.8 Operating Expenses 1,072.9 1,011.3 1,280.9 1,486.0 Add: Interest Paid 38.4 33.9 50.9 77.4 Employee Expenses 35.9 55.7 73.9 86.3 (Inc)/dec in Current Assets -502.3 168.9 -116.6 -134.9 Administrative Expenses 96.7 58.1 70.2 86.3 Inc/(dec) in CL and Provisions 709.2 112.0 204.0 237.0 Change in inventory& Other exp. (132.9) 133.5 - - CF from operating activities 499.3 536.4 382.2 454.1 Total Operating Expenditure 1,072.6 1,258.6 1,425.1 1,658.6 (Inc)/dec in Fixed Asset -619.4 -392.6 -650.0 -700.0 EBITDA 348.6 324.1 423.4 498.9 Others 105.5 41.7 11.4 2.5 Growth (%) 16.3 -7.0 30.7 17.8 CF from investing activities -513.9 -350.8 -638.6 -697.5 Depreciation 6.9 7.5 8.3 10.8 Issue/(Buy back) of Equity 0.5 1.1 0.0 0.0 Interest 38.4 33.9 50.9 77.4 Inc/(dec) in loan funds 41.8 -88.7 325.0 225.0 Other Income 19.9 20.9 10.0 10.0 Dividend & dividend tax - - - - PBT 323.2 303.6 374.2 420.7 Interest Paid 38.4 33.9 50.9 77.4

Total Tax 76.2 79.1 127.2 143.1 Others -12.4 36.5 -147.3 -77.4 Minority Interest (0.1) 10.4 11.4 13.9 CF from financing activities 29.9 -51.1 177.7 147.6 PAT 247.1 214.2 235.6 263.8 Net Cash flow 15.3 134.5 -78.7 -95.8 Growth (%) 23.7 -13.3 10.0 12.0 Opening Cash 154.4 169.7 304.2 225.5 EPS (|) 26.7 22.9 25.2 28.2 Closing Cash 169.7 304.2 225.5 129.7

Source: Company, ICICIdirect.com Research Source: Company, ICICIdirect.com Research

Balance sheet | Crore Key ratios (Year-end March) FY15 FY16 FY17E FY18E (Year-end March) FY15 FY16 FY17E FY18E Liabilities Per share data (|) Equity Capital 92.5 93.6 93.6 93.6 EPS 26.7 22.9 25.2 28.2 ESOP's - - - - Cash EPS 27.5 23.7 26.1 29.3 Reserve and Surplus 1,389.7 1,674.2 1,813.5 2,077.3 BV 160.2 188.9 203.8 232.0 Total Shareholders funds 1,482.2 1,767.8 1,907.1 2,170.9 DPS 0.0 0.0 0.0 0.0 Total Debt 425.0 336.3 661.3 886.3 Cash Per Share 18.3 32.5 24.1 13.9 Other Non Current Liabilities 259.2 302.9 314.2 316.7 Operating Ratios (%)

Total Liabilities 2,166.4 2,407.0 2,882.6 3,373.9 EBITDA Margin 24.5 20.5 22.9 23.1 EBIT / Total Operating income 24.0 20.0 22.5 22.6

Assets PAT Margin 17.4 13.5 12.7 12.2

Gross Block 4,116.4 4,153.6 4,803.6 5,503.6 Inventory days 35.2 0.8 0.8 0.7 Less: Acc Depreciation 2,902.3 2,909.8 2,918.1 2,928.9 Debtor days 135.0 98.8 98.8 98.8 Net Block 1,214.1 1,243.8 1,885.5 2,574.7 Creditor days 277.7 269.1 269.1 269.1 Capital WIP 1,018.1 1,373.5 1,373.5 1,373.5 Return Ratios (%) Total Fixed Assets 2,232.2 2,617.3 3,259.0 3,948.2 RoE 16.7 12.1 12.4 12.2 Investments 0.0 0.0 0.0 0.0 RoCE 16.7 14.0 14.7 14.8 Inventory 136.9 3.4 4.0 4.1 RoIC 35.1 43.8 32.5 26.2 Debtors 525.7 428.2 500.2 583.8 Valuation Ratios (x) Loans and Advances 184.0 232.6 271.7 317.1 P/E 7.7 9.0 8.2 7.3 Other Current Assets 16.3 29.8 34.8 40.6 EV / EBITDA 6.3 6.1 5.6 5.4 Cash 169.7 304.2 225.5 129.7 EV / Net Sales 1.5 1.2 1.3 1.2

Total Current Assets 1,032.6 998.2 1,036.1 1,075.2 Market Cap / Sales 1.4 1.2 1.0 0.9 Creditors 1,081.1 1,166.8 1,362.8 1,590.6 Price to Book Value 1.3 1.1 1.0 0.9 Provisions 21.1 47.5 55.4 64.7 Solvency Ratios Total Current Liabilities 1,102.2 1,214.3 1,418.2 1,655.3 Debt/EBITDA 1.2 1.0 1.6 1.8 Net Current Assets -69.6 -216.1 -382.2 -580.1 Debt / Equity 0.3 0.2 0.3 0.4 Other Non Current Assets 3.8 5.7 5.7 5.7 Current Ratio 0.8 0.6 0.6 0.6 Application of Funds 2,166.4 2,407.0 2,882.6 3,373.9 Quick Ratio 0.7 0.6 0.6 0.6

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) FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E FY16E FY17E FY18E DB Corp (DBCORP) 372 350 Hold 6,838 16.1 17.7 21.9 23.1 21.0 17.0 12.8 11.4 9.3 29.9 27.4 29.9 22.0 20.5 22.2 DISH TV (DISHTV) 89 87 Hold 9,471 6.5 2.8 3.6 13.7 31.4 24.4 10.0 8.3 6.9 31.1 37.0 41.3 181.9 44.341 36.279 ENIL (ENTNET) 762 800 Buy 3,632 21.0 17.0 24.0 36.3 44.7 31.8 23.3 21.6 15.9 14.5 13.6 17.7 13.0 9.6 12.0 Eros (EROINT) 206 225 Hold 1,931 22.9 25.2 28.2 9.0 8.2 7.3 6.1 5.6 5.4 14.0 14.7 14.8 12.1 12.4 12.2 Hathway Cables (HATCAB) 35 28 Sell 2,865 -2.0 -1.1 -1.0 NM NM NM 11.0 9.4 8.5 1.1 3.6 4.0 NM NM NM HT Media (HTMED) 82 86 Hold 1,913 7.2 7.0 8.6 11.4 11.7 9.6 7.2 4.8 3.6 10.7 11.7 13.2 8.2 7.4 8.3 Inox Leisure (INOX) 207 260 Buy 1,896 8.4 9.7 11.5 24.5 21.3 18.0 11.0 8.7 7.2 11.1 13.3 15.2 10.9 10.5 11.1 Jagran Prakashan 170 205 Buy 5,564 13.6 12.9 15.0 12.5 13.2 11.4 9.7 8.2 6.5 23.9 25.357 27.075 22.5 22.5 22.0 PVR (PVRLIM) 903 1,010 Buy 4,217 25.4 20.0 27.8 35.5 45.2 32.5 13.5 12.3 10.0 15.6 13.3 16.5 14.3 9.7 12.0 Sun TV (SUNTV) 364 372 Hold 14,348 23.4 26.7 30.9 15.6 13.7 11.8 7.3 6.2 5.2 36.0 37.6 38.6 25.0 26.0 26.6 TV Today (TVTNET) 298 363 Buy 1,778 15.8 21.5 25.9 18.9 13.9 11.5 11.1 7.9 6.1 27.6 30.4 30.7 17.7 20.1 20.2 ZEE Ent. (ZEETEL) 450 490 Buy 43,199 10.7 14.2 16.3 42.1 31.6 27.5 27.5 22.7 18.9 25.9 27.4 26.7 16.8 18.3 17.8 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, Bhupendra Tiwary 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 is a Sebi registered Research Analyst having registration no. INH000000990. 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.

This report is based on information obtained from public sources and sources believed to be reliable, but no independent verification has been made nor is its accuracy or completeness guaranteed. This report and information herein is solely for informational purpose and shall not be used or considered as an offer document or solicitation of offer to buy or sell or subscribe for securities or other financial instruments. Though disseminated to all the customers simultaneously, not all customers may receive this report at the same time. ICICI Securities will not treat recipients as customers by virtue of their receiving this report. Nothing in this report constitutes investment, legal, accounting and tax advice or a representation that any investment or strategy is suitable or appropriate to your specific circumstances. The securities discussed and opinions expressed in this report may not be suitable for all investors, who must make their own investment decisions, based on their own investment objectives, financial positions and needs of specific recipient. This may not be taken in substitution for the exercise of independent judgment by any recipient. The recipient should independently evaluate the investment risks. The value and return on investment may vary because of changes in interest rates, foreign exchange rates or any other reason. ICICI Securities accepts no liabilities whatsoever for any loss or damage of any kind arising out of the use of this report. Past performance is not necessarily a guide to future performance. Investors are advised to see Risk Disclosure Document to understand the risks associated before investing in the securities markets. Actual results may differ materially from those set forth in projections. Forward-looking statements are not predictions and may be subject to change without notice.

ICICI Securities or its associates might have managed or co-managed public offering of securities for the subject company or might have been mandated by the subject company for any other assignment in the past twelve months.

ICICI Securities or its associates might have received any compensation from the companies mentioned in the report during the period preceding twelve months from the date of this report for services in respect of managing or co-managing public offerings, corporate finance, investment banking or merchant banking, brokerage services or other advisory service in a merger or specific transaction.

ICICI Securities or its associates might have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the companies mentioned in the report in the past twelve months.

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 Bhupendra Tiwary 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 Bhupendra Tiwary MBA, 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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