Shree Ashtavinayak Cine Vision Ltd: A Brief Analysis:

CMP: Rs.4.12

52-week High/Low: Rs.51.02/ Rs.3.81

Book Value: Rs.6.03

Market Cap: Rs.339.77 Cr

Target: Rs.7.5-8.

Gains: 80% plus.

Time: 9-12 months time frame.

SHORT TERM CHARTICAL INFERENCES:

Support: Rs.4.10

R1 & R2: Rs.4.75 and Rs.5.15.

Stochastic: Oversold

Bollinger Bands: Buy Mode

RSI: Buy mode

Moving Average Cross-over: Not seen on daily charts.

MACD: Not in Buy mode.

Introduction: The Indian entertainment industry and the film industry in particular, is at the threshold of exponential growth. For industry participants to extract value from this growth, it will be imperative to adopt globally relevant structures of doing business, becoming efficient and cost effective. Shree Ashtavinayak Cine Vision Limited is attractively poised in this scenario through its integrated approach, corporatised structure, and a professional & capable team to catapult a higher than average growth in the future. This will not only lead to the creation of one of the most respected companies in the industry from India, but also to create lasting content with progressively enhancing value.

With a clear focus on high entertainment value, Shree Ashtavinayak Cine Vision integrates the value chain in the commercial motion picture segment from production to distribution to exhibition.

Sector Outlook: Media & Entertainment Sector: This is one of the fastest growing sectors in India. The sector consists of creation, aggregation and distribution of content, products and services, news and information, advertising and entertainment through various channels and platforms.

The industry is taking initiatives like regional content and distribution platforms (digital, non-digital and mobile) to enhance customer understanding as well as monetize content. New technologies such as 3G, broadband and mobile infrastructure are also helping in propelling the growth rate. The Indian economy grew at a faster pace in 2010 compared to 2009, which translated into more advertising as well consumer spending. This high growth rate will continue to remain in 2011 as well.

Triggers:

The audience will see plethora of releases in 2011 and 2012 from the house of Shree Ashtavinayak Cine Vision Ltd

Projects which are near in completion are:

(i) 'Rockstar' starring Ranbir Kapoor, Nargis Fakhri directed by Imtiaz Ali composed by A.R Rahman and Run Bhola Run Starring Govinda and Tushar Kapoor directed by Neeraj Vora.

(ii) On the other hand Ashtavinayak is also working with successful directors like Rohit Shetty for the remake of old Golmaal starring Abhishek Bachahan and Ajay Devgan and also Golmaal 4 in the near future.

The company has other projects in the pipeline which includes Soham Shah directed Satte Pe Satta starring Sanjay Dutt and Raj Kumar Santoshi "Ladies and Gentleman".

The company is also working with other leading players in the industry like Saket Chaudhary, Milan Luthria who are tied up with other multiple projects.

Very recently, SHREE ASHTAVINAYAK CINE VISION LTD has joined hands with LFS MEDIA & ENTERTAINTMENT (LFS GROUP) to announce their new project tentatively called 'INDIA STUDIO CITY'.

According to FCCI report 2011, the Indian Media and Entertainment sector worth $17 billion in 2011 is slated to grow at over 14% CAGR to $ 29 billion in 2015, with the film industry expected to grow to $ 3 billion by 2015. Digitization of theaters, higher average ticket prices and the growth of multiplexes are the primary drivers fuelling growth in the industry.

Shree Ashtavinayak Cine Vision Ltd is expected to make more and more projects to increase the scalability and also focus on good opportunities in the distribution segment.

Note: This stock was recommended to the Free Groups on 1st August, 2011.