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Saregama -Indian music company hitting the right note.
tonyx - Sun, 01 Jan 06 :
Saregama India Ltd
Company Overview
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The Company's business is the manufacture and marketing of music cassettes, compact discs and other forms of Indian music. The Company has a sub-licence from Saregama India Limited (SIL) (Erstwhile The Gramophone Company of India Limited) to exploit in certain countries (the "territories") the existing and future music catalogue of SIL.
The territories are: United Kingdom, United States of America, Continental Europe, Canada, South Africa, The Caribbean.
The Company has rights to:
* Manufacture and distribute any album released by SIL * Manufacture and distribute its own compilations of SIL music * Use the "RPG Music" and "SAREGAMA" name and logo in the territories * Re-licence the copyright of the territories * Acquire any repertoire or record library or sign any artist directly * Create further sound recording based on SIL music (eg "Hindi pop")
Link to company website:
Link to Ofex site:
Link to News announcements:
Link to financial reports/accounts:
Saregama Plc manufacture & market all forms of Indian music. They floated at 275p five years ago and reached a low of 2.75p a few weeks ago. Market cap today is £400K.
On 28/12/05, they released their interim results which showed a profit of £60K against £770K turnover which gives EPS of 0.6p putting them on a P/E of under 3.
From interims: Your company expects that in the second half of this fiscal year physical format sales will continue generating profits.
Unquoted analyst have said these are a "speculative buy", which they are but if they carry on generating profits , they could be a multibagger. Spread is a killer & the share is very illiquid so highly risky.
Please DYOR and good luck!!!
I have bought 25K @ 5p & 15K @ 6.25p
16/3/06-Another 10K bought @ 10p
3/5/06-Another 10K bought @ 9.9p
13/6/06-Another 10K bought @ 10p
(Thanks to glennborthwick for starting previous thread)
28 December 2005
Saregama plc - Interim Results
SAREGAMA PLC
CHAIRMAN'S STATEMENT FOR THE PERIOD APRIL-SEPTEMBER 2005
BACKGROUND
It is important to mention that the entertainment industry all over the world
has grown significantly, but there has been a sharp decline in recorded music
sales in the physical format due to the advance of technology, particularly in
respect of MP3 and Internet downloading. The period under review has shown
remarkable growth in revenue emerging from our publishing income stream as well
as from the physical format sales, due to some specific albums, which have sold
exceedingly well.
It is pertinent to mention here, that your company sold 20,000 compact discs of
Shahrukh the King Khan and 16,000 of Mohabbatein during this period in its
designated territory.
Considering these bottlenecks in the sale of physical formats, your company did
wonders in enhancing these sales, capturing German and French Markets and
achieving further operational efficiencies. The company recorded sales of
music cassettes of 60,000 and compact discs of 246,000 pieces. The company has
registered a growth of 152% in the non physical format and music publishing
income for the period totalled around GBP 300,000.
OPERATIONAL EFFICIENCIES
Your company has done remarkably well during the first half of 2005-2006. It
has posted a profit of GBP 60,000 compared to loss of GBP 25,000 during April -
September 2004. Your company has generated cash from operations of GBP 167,590
before amortisation, depreciation and provisions.
MACROANALYSIS OF PERFORMANCE:
1. Customized products with value added for corporate orders from Air India.
2. Substantial increase in the average realization of compact discs and music
cassettes in comparison to the previous period. This has been possible due to
an innovative product mix.
3. Timely recovery of debtors and effective credit control.
4. Huge reduction in account operating expenses. The major savings were made
in personnel, legal and interest paid on working capital loan etc.
PRODUCTS
Specific international products were created which brought about extremely good
returns. Some of the significant products are listed below:
Shahrukh the king khan (20,000 compact discs sold);
Mohabbatein (16,000 compact discs sold);
Zeher (25,000 compact discs sold).
OUTLOOK FOR THE 2ND HALF 2005 - 2006
Your company expects that in the second half of this fiscal year physical
format sales will continue generating profits. Revenues from publishing shall
also be steady as a result of the registration of the company's Licensor's
catalogue with various publishing bodies in USA, UK and Europe. The company
expects to increase its profits through further improved cost control, by the
creation of valued products for niche consumers, the liquidation of slow moving
stocks and providing a continued thrust in respect of publishing and licensing
income.
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TBA.
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