Stock Pick From Real Estate And Entertainment Sector

BSE Code: 533150

FV: Rs 5

CMP: Rs 340.20

Godrej Properties, India's premier real estate company reported 21.1 per cent growth in consolidated net profit at Rs 231.10 crore in FY16 and its revenue grew by 42.91 per cent for the period at Rs 2,633.96 crore. It’s EBITDA grew by 36.22 per cent at Rs 350.40 crore while EBITDA margin contracted by 125 bps for the current period at 12.71 per cent. The company achieved a record property bookings of Rs 5,038 crore in FY16, up 88 per cent from previous year, helped by sale of 4,35,000 sq ft of commercial space at Godrej BKC, Mumbai, for Rs 1,479 crore. In FY17, it plans to launch five new projects and 10 new phases of existing projects across major cities. New operating cycle of the company is comforting with better profitability and visibility of improvement in operating cash flows and revenue booking.

BSE Code: 533261

FV: Rs 10

CMP: Rs 209.10

Eros International Media, a leading global company in the Indian film and entertainment industry, has reported 13.32 per cent de-growth in net profit on consolidated basis to Rs 214.15 crore in FY16 as against a net profit of Rs 247.06 crore in the previous fiscal. However, its net sales were up 11.36 per cent to Rs 1,582.68 crore in FY16 as against Rs 1,421.17 crore in FY15. Profitability was marginally impacted by holding back of high-margin catalogue revenues in the second half of the year to focus on working capital efficiencies and due to the postponement of some Q4 releases to FY17. The company’s latest released film Housefull 3 has collected over Rs 100 crore globally in its opening weekend at the box office. Other blockbuster movies are also in the pipeline such as Dishoom, Banjo, Rock On 2. We believe FY17 performance of the company may be better compared to previous year.