~:WINNING STROKES: THINK DIFFERENT:~

Tips Industries Ltd recommend at around Rs.29.5--30, touched Rs.31.70 yesterday. The next target for the scrip is Rs.48-52 Over the decades, Tips has created entertaining film content around the genres of love, patriotism, action, horror and culture. This translated into the box office success of films like Raja Hindustani, Jab Pyaar Kisise Hota Hai, Ajab Prem Ki Ghazab Kahani and Race, among others. Tips integrated sound management principles within the entertainment industry through budgeting, artist selection, timely completion and professional distribution capabilities.

Outlook:
• The Company intends to launch a big-budget film Race 2, starring Saif Ali Khan, John Abraham, Anil Kapoor, Deepika Padukone and Sonakshi Sinha(directed by Abbas-Mastan, music by Pritam) in 2011-12.
• The Company intends to produce a mid-budget film with Shahid Kapoor (directed by Siddhartha Anand, music by Pritam) in 2011-12.
• The Company intends to release a Punjabi film, Jihne Mera Dil Luteya in 2011-12.
• The Company intends to enter into a tie-up with a leading studio to invest, fund and distribute films made by the Company.
• The Company’s repertoire of films of last 25 years is expected to continue generating royalty revenue.
• The Company plans to release around five films by March 2013. These initiatives will enhance film production revenues in an attractive way over the foreseeable future.

Music:
In India, music business is an important part of the entertainment industry with total size of roughly US$ 10 million. Hindi film music dominates this with a 40% share followed by regional and old hits at 25%. However, the recent affect of digitisation has resulted in shake-up of old and established model, and is likely to see major revamping.
Unless a newer model emerges, the company has decided to remain selective in the music business. Tips acquired music rights for the movie BOL during the year FY11. The Company appointed a new head of music business development to unlock its archival value. Royalty income from music rights increased from Rs. 31 crore in 2009-10 to Rs. 36 crore in 2010-11. The Company’s 25-year music repository is expected to generate royalty revenues across the coming years.

During the fiscal year FY11, the Company bought back 13,47,200 shares from the open market using the nation wide electronic trading facilities of the Bombay Stock Exchange Limited (‘BSE’) and National Stock Exchange of India Limited(‘NSE’) from the registered shareholders/beneficial owners. The buy back offer was open from June 11, 2010 to August 23, 2010. The total amount paid by the Company for buy back is Rs.639.96 lacs (without brokerage). The highest price paid for buy back is Rs.48.50 & the lowest price is Rs. 42.50, so the equity shares were bought back at an average of Rs.47.50. Hence the share price of the company is expected to move up to this price at least.

Future outlook of Indian Entertainment Industry: 

Indian entertainment industry is among the fastest growing sectors in the country. In the past two decades entertainment industry in India has witnessed explosive growth. The popularity of Indian entertainment industry goes well beyond the geographical frontiers of the country. As India’s profile rises on the global stage, interest in India’s culture and entertainment industry is also bound to grow.

New Technology is driving the entertainment industry / Music Industry into the next decade, and its boundaries is merging with those of the telecommunications and information technology segments, giving rise to a host of value-added features for consumers and new revenue streams for players in the industry. There is a technology push in the industry with a wide repertoire of film and music becoming available through a variety of legitimate and convenient platforms and options like increased internet penetration, digital downloads, ring tones, introduction of DTH and IP-TV, Video on Demand, Satellite Radio and FM Radio, cable and satellite television, pay per view telecast, etc. Due to the emergence of very prominent 3G services, mobile entertainment is becoming the biggest growth driver in digitization of music & films.

Large scale exploitation of movies & music is also undertaken through mobile services like ring tones, caller tunes, games, images, wallpapers, themes, song video downloads, etc. The company is currently in process of commencing production of a movie directed by the Abbas-Mastan which is the sequel of super hit movie the Race. The star casts of the movie include John Abraham, Saif Ali Khan, Sonakshi Sinha, Deepika Padukone & others are in finalization stage. In the current year company is in process of distributing another Punjabi Movie “Jinhe Mera Dil Lutiya”. Overall, the industry is expected to register a CAGR of 14% to touch INR 1,275 billion by 2015.

DCB Ltd moved to Rs.42.85 from the low of Rs.40.65 made couple of days back. There is a brief report on the company at www.sumanspeaksplus.blogspot.com.