Aug 27, 2007

Investor's Eye ... 27/08/07


Introduction :

Adlabs is by far the largest entertainment conglomerate in the country. Thought leaders in every sense of the word, They are the defining force in every sphere of the entertainment industry - production, distribution, processing or in cinemas - having started as a laboratory for processing ad films over three decades ago. Be it pioneering the concept of multiplexes, giving a corporate face to movie making, or introducing the IMAX experience, it has always been Adlabs first - in short, 'never a dull moment' for the industry.

Business Interests :
Film Processing
Film Exhibition
Film Distribution
Film Production Business
Television & Animation Business
Radio business ( Fm radio -- BIG 92.7 )

Adlabs Also operates a music Label " BIG MUSIC " which publishes music cds & cassettes for indian movies.

Adlabs recently announced that the film production business will be carried out through a new subsidiary of Reliance Entertainment, named " Big Motion Pictures Ltd ".

Company Plan's :

Focus on prolific film markets: Hindi, Tamil and Telugu
Acquisition of existing single screens for conversion/refurbishment
Building high quality studio infrastructure.

Company Activites :

A successful track record: Bluffmaster, Apaharan, Taxi 9211, Nishabd, Namastey London, etc.
Tie-ups with established directors in the industry
Strong line up of 6-8 films to be released across different genres every year
Co-production with MTV to produce youth centric movies
Co-production with Hyde Park to produce Hollywood films
Strong international and domestic distribution set up: prestigious movies released – Krrish, Baabul, Janeman, Vivah, Guru, Spiderman 3 etc.
§A portfolio approach: financial limits on movie risk.

Other Business Interests :


Majority ownership in Siddhartha Basu's Synergy Communications
Track record of highly successful shows : Mastermind, Jhalak Dikhhla Jaa, Kaun Banega Crorepati etc.
Leverage strengths of pedigree, track record and scale to provide quality content
Building expertise in the kids, lifestyle and fiction genres


Entry into the segment with two prestigious projects
Tamil/English project featuring Rajinikanth
Movie around a well known kids brand – Gini and Jony

Big FM

Largest FM radio network – launching 45 stations across India
Take FM radio as a medium of entertainment into virgin markets beyond the metros
Has the capacity to touch every fifth Indian across the country, every third urban Indian and every eight Indian in rural India
Value pick in terms of cost per license: Rs. 3 crore per license
20 stations launched
Initial consumer feedback encouraging
In the process of being demerged from Adlabs Films

Company News :

ADAG to invest Rs 500cr to produce 40 films
Adlabs Operates 100 screen across India.
Adlabs & ocher revel first look of Rajnikanth's animated movie sultan of warrior.

Company results :

ADLABS RECORDS 100% PLUS GROWTH~ EBIDTA up 100 % to Rs 101 crore
Net Profit up 158 % at Rs 73 crore


Consolidated revenues for Q4 FY07 grew by 174 % to Rs 106 crore
EBIDTA for Q4 FY07 at Rs 24 crore grew by 88 %
PAT for Q4 FY07 at Rs 15 crore grew by 90 %12 MONTH HIGHLIGHTS
Consolidated revenues grew by 166 % to Rs 348 crore over the 12 month period
EBIDTA was at Rs 101 crore grew by 100 % over the 12 month period
PAT at Rs 73 crore grew by 158 % over the 12 month period

Stocktrendz Overall Review :

The Stock is a long term Multi Bagger stock
Investors can buy this stock with a price target of 650 + ( 8 to 12 months hold )


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