Business (Product/Revenue Segments)
The company belongs to entertainment & Media sector which is majorly into 3 activities
- Movie Content Production
- Movie exhibition (Multiplexes)
- Educational institute - Whistling woods
Movie Production
It’s a 40-year-old company founded by Showman Subhash Ghai. Before going public, the company produced great blockbuster movies. But somehow company couldn’t produce any good films post IPO.
They also wanted to diversify into Television content & digital content. But failed to start.
They have a library of around 40 films which earns them around rs 12cr/annum from satellite rights.
It’s their core business, but somehow they have completely lost it.
Multiplexes
They have around 75-80 screens, but the business is completely shut because of covid-19.
The company lost around Rs 15-17 Cr last year.
The topline of the multiplex business was around Rs 125 Cr in FY19-20
Whistling Woods international
WWI was started 16 years back but landed in the judiciary troubles which took 10 years of management. The issue is resolved & awaiting final court clearance which should happen in 3 months of Mumbai high court opening for physical hearing.
WWI is now listed in the top 10 Media schools in the world with around 1300 students
Opportunity
It’s a super undervalued stock. The current market cap is Rs 80 Cr & The topline for FY 19-20 was around Rs 172 Cr. (Ignore last year due to covid19)
Movie business earning Rs 12 Cr/year
Whistling woods - The last topline was Rs 55 Cr.
It must be earning around Rs 20-/25 /year
Multiplex business should be valued around Rs 150 Cr
The company have result around Rs 200 Cr, earring them around Rs 9cr/year
Valuation
Movie business with its library: Rs 100 Cr
Whistling woods: Rs 300 Cr
Multiplex: Rs 150 Cr
Real Assets: Rs 200 Cr
Company Valuations: Rs 750 Cr
But still, company valuations have no value, till the company is not reporting profits
Financials
https://www.screener.in/company/MUKTAARTS/
Market Cap: Rs 86 Cr
Consolidated 11 years Profit & Loss
Consolidated 11 years Balance Sheet
Shareholding: 8000 shareholders
Promoters along with the top 1000 shareholders hold 96%, only around 8.5 lakhs are with retail investors
list of shareholders (1).xlsx (236.8 KB)
Risks
Multiplex business :
Assuming that the cinema halls will open in 2-3 months which are shut due to covid19 lockdown. Any further delay may affect the multiplex business
Movie Production:
There is almost no risk as movie production is already low for the last 3-4 years.
But any further covid19 lockdown due to wave3 may delay the production of the new movie.
Whistling woods:
The resolution of the WWI land issue has been delayed for the last 2-3 years due to Elections, drought & Covid19. Any delay in the opening of the Mumbai high court will delay the WWI land resolution which is the biggest trigger for the stock price.
Disclaimer: Invested
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