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Friday, August 23, 2013

tough road for balaji telefilms

The transition is interesting:


Although the performance in 2013 has been somewhat better than the immediate prior years, it seems like a long way to go for this firm.

Operating losses, low earnings translate into not-so-meaningful return on capital and equity. This is something management should be aware of and consider measures to improve. More so for their own benefit since the promoter-management stake is about 42%.

The company's business is both television and movie-making. It is a challenging business; highly competitive, and depends more on individual talents and audience perceptions. 

But then there is immense scope:



The good news is, there is no debt. The bad one is, there is a lot of capital which needs to earn its fair share.

Can Ekta Kapoor pull it off? She is very much capable. 

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