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deveshkayal
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Joined: 04/Sep/2006
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Posts: 3903
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   Topic: Moser Baer - From CD's to content.
Posted: 15/Jan/2007 at 7:55pm |
Moser Baer – Triple play (Optical disc,solar energy,Home video)
Moser Baer is all set to change the way business is done in India’s home video segment. The company has formed an entertainment division. It has launched DVDs and VCDs at Rs 34 and Rs 28 respectively. The company has copyright licenses to 7000 movie titles. The company will release 4500 labels between second week of January and April, in Tamil, Malayalam, Telugu, Kannada, Bhojpuri, Marathi, Bengali, Gujarati and Punjabi. It will launch Bollywood titles in Feb and English movies in April.
Market Cap – Rs.3711 crore
CMP - Rs 330
The size of the copyright home video market is around Rs 200 crore, while the pirated market is believed to be 100 times bigger. The company plans to expand this to Rs 1000 crore in three years. Given the price points it is currently operating at, the management expects each movie title to break-even in less than 18 months from hitting the market.
The company expects to have over 1, 70, 000 points of sale across the country in coming 18-24 months. On the margin front, the company says 25% is kept for the retailer, 5% for the distributor. The business will be all about driving volumes. The target is own the rights of atleast 50 % of the movies released in India. The management expects margins in the optical disc business at 35%. Its subsidiary Moser Baer Photovoltaic (MBPV) is betting big on solar energy.
Edited by deveshkayal - 02/Apr/2007 at 9:57pm
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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basant
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Posted: 15/Jan/2007 at 8:14pm |
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It looks extraordinarily attractive given the size of opportunity. I think that the business model makes tremendous sense. Let us explore this company further.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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prosperity
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Joined: 01/Sep/2006
Location: India
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Posted: 15/Jan/2007 at 8:30pm |
1 request - First, Pls. send your analysis as private message to all TED members. You could then, after 1 day, post the same as a general message....
I have a feeling, if your writeup suggest buy and is posted as a general message the stock would shootup at opening tomorrow morning itself !!
Thatz the power of TED ...
Kindly ensure it does not work against us, instead works for us ...
Thanx ..
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vip1
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Posted: 15/Jan/2007 at 9:07pm |
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One has to look at the Solar energy Photovoltaic cell business of Moser Baer , that will be the Future of Energy(and the world, mankind) . If they can tap this Business , there might be another Suzlon Hidden in it .
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basant
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Posted: 15/Jan/2007 at 9:13pm |
Originally posted by prosperity
1 request - First, Pls. send your analysis as private message to all TED members. You could then, after 1 day, post the same as a general message....
I have a feeling, if your writeup suggest buy and is posted as a general message the stock would shootup at opening tomorrow morning itself !!
Thatz the power of TED ...
Kindly ensure it does not work against us, instead works for us ...
Thanx ..
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In a bull market everything seems possible but it is co-incidental. WHile I agree that members should profit I really doubt that because we discuss a stock it goes up. On the other hand I would like to think that we discuss those stocks that are just about to go up.
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'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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deveshkayal
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Joined: 04/Sep/2006
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Posted: 15/Jan/2007 at 10:10pm |
An interesting aspect of Moser Baer entertainment business is its manufacturing facility in New Delhi.The company has invested around $2 million towards importing two machinery from Germany and Israel.These state of the art machines can produce 2 lac units on daily basis and do not require human intervention.In all the production centre has manpower strenght of just six employees.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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prosperity
Senior Member
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Location: India
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Posted: 15/Jan/2007 at 11:36pm |
I used to hold Moser Baer some years back... there was a FUNDAMENTAL reason why i sold it ...
One of the raw materials to produce CD/DVD comes from oil and oil was going up so was the cost to produce CD/DVD and hence profit margin....
just log on to their website and see quarterly reports ... when they were turning back from QUARTERLY LOSSES to margnal PROFITS....
It looked to me that if oil goes up, this company cannot sustain MARGINS and comes under LOSS ... forget rate of increase in profits ..
But the mgmt is very good and focussed the business looked to me bad as seen above !!
Thanx !
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deveshkayal
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Posted: 16/Jan/2007 at 11:37am |
Photovoltaic technology is the ability to take photons from light and convert them into energy - as in solar cells for most people.But Puri isn't thinking calculators and watches."If I were to cover the roof of this office with solar energy sources,I could easily offset a significant amount of my electricity bill"
To generate one unit of energy (1 Kilowatt hour), it cost 40-50 cents which has come down from $1.50 in mid-90s.
Solar energy is already becoming extremely popular in environmentally conscious countries such as Germany."Energy consumption peaks at the middle of the day, and solar cells are most effective at the middle of the day".
The global photovoltaic industry will be worth $40 billion in 2010 from $6 billion in 2006.
"Do you know who one of the richest man in China today?" The man is Shi Zhengrong (Seventh on Forbes list of China's richest people with an estimated net worth of $1.43 billion who syarted Wuxi-based Suntech,a giant in Solar energy.
Crude is expected to be in the range of $50-60 this year unless some geo-political tension arises.
Moser Baer is expanding from Optical disc to Solar energy to Home video market. So the margins will be offset against one another. According to me, it should give significant returns over the next three years.
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"You don't need to be a rocket scientist. Investing is not a game where the guy with the 160 IQ beat the guy with a 130 IQ. Rationality is essential"- Warren Buffett
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