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Top 4 Entertainment Industry Stocks in India to invest in 2021 | Best Film Production Distribution and Entertainment stocks

 

BEST ENTERTAINMENT STOCKS TO BUY


The entertainment sector companies are those indulged in film producing, television, distribution, music promotion, etc. It is one of the biggest sectors in the Indian industry. People in India spent a considerable amount of money on entertainment services.

 

However, after the spread of COVID-19, the sector is highly impacted and the revenues have gone down. But as the country is recovering from the pandemic impact and the lockdowns in different states of the country are being removed, very soon the multiplexes and Movie theaters will also open. The Television industry has also managed to continue their shooting and work with proper safety measures and deliver the content to the audiences.

 

As and when the day government announces to open all the movie theaters and multiplexes, the entertainment stocks are expected to show an upside surge, and making a position in these stocks at the current level may give you substantial profit.

 

Here we are going to discuss the top 4 entertainment stocks in India to invest in 2021

 

1)          1) SAREGAMA INDIA

Saregama India is India’s oldest music label and multi-language TV content producing company. The company is established in 1901 and is headquartered in Kolkata. The chairman of the company is Mr. Sanjiv Goenka.

Saregama also produces films under the brand name Yoodlee Films. Saregama also launched its product Caravan which is a portable music player with pre-loaded Bollywood vintage songs. The product was quite successful in the market.

The company’s market capitalization is Rs. 4706 cr. The net sale of the company stood at Rs. 441 cr for FY 2020-21 even under the impact of COVID-19 against the net sale of Rs. 521 cr for FY 2019-2020. The company has reported a net profit of Rs. 113 cr for FY 2020-21. The current market price CMP of the stock is Rs. 2690. 

With the government upholding restrictions on Film production and multiplexes getting opened, the sales of the company and hence profit are expected to grow this year also. The stock is a good medium to long-term investment stock for investors.

It is listed on both NSE and BSE with its symbol SAREGAMA on BSE and SAREGAMA-BE on NSE.

 

2)      2) PVR Ltd.

PVR Ltd. Is the market leader in terms of the number of screens in India. The company was established in 1997 and is headquartered at Gurugram. The company has emerged as a brand for a premium movie theatre experience.

Currently, the company has 845 screens in 176 cinemas around 71 cities     in India and Sri Lanka. The total seating capacity of approximately 1.82 lakhs seat. PVR also collects its revenues from the non-box office which includes primarily from food and beverages.

 

The market capitalization of the company is Rs. 8580 cr. The company has reported quarter on quarter growth in its revenues. The company has reported net sales of Rs. 280 cr in FY 2020-21 against net sales of Rs. 3414 cr. In FY 2019-20. The drastic decrease in sales is due to the COVID-19 pandemic and lockdown and government restrictions in all parts of the country. The company is expected to bounce back with its revenues as the government restrictions are upheld.

 

The current market price CMP of the stock is Rs. 1410.15. The company is listed on both NSE and BSE with its symbol “PVR”.

 


3)      3) INOX Leisure

INOX Leisure is one of the largest multiplex chains operating in India. The company was established in 2002 and headquartered in Mumbai.

The company has 648 screens with 153 multiplexes across 69 cities in India. INOX operates a Megaplex in Mumbai at InOrbit Mall, Malad, Mumbai which has the highest number of cinema viewing experiences in the world.

The market capitalization of the company is Rs. 3924 cr. The net revenue of the company stands at Rs. 105 cr. For FY 2020-21 against net sales of Rs. 1897 cr in FY 2019-20. Net loss of Rs. 337 cr for FY 2020-21 is reported by the company.

With Government restrictions being upheld across the country for multiplexes, the company is expected to generate huge revenues in the upcoming quarters.

The company is listed in both NSE and BSE with its symbol “INOXLEISUR”.

 

4)      4) TIPS Industries

Tips Industries is one of the largest music promotion companies in India. The company was founded by Mr. Ramesh Taurani and Mr. Kumar Taurani in 1975 and is headquartered in Mumbai.

The company owns more than 3500 titles and has grossed millions in sales through it. Tips hold soundtrack copyrights of more than 50 Hindi Movies. Its distributors serve more than 1000 wholesalers across the country. The company has also entered Film production and has produced many films.

The market capitalization of the company is Rs. 1821 cr. The net revenue of the company is Rs. 90 cr. for FY 2020-21 and is the same as for FY 2019-20. However, the net profit of the company has inc reased from Rs. 11 cr in FY 2019-20 to Rs. 43 cr. in FY 2020-21. The Current Market Price CMP of the company is Rs. 1404.70.

The company is expected to see an increase in sales with the restriction on film production and the music industry being removed.

The company is listed in both the NSE with its symbol “TIPSINDLTD” and BSE with its symbol “TIPSINDLTD-BE”.

 

 

KEY TAKEAWAYS:

Entertainment Industry has faced a huge fall after the pandemic. However, with the public being homebound, eagerly waiting for the cinema halls to be opened and the sector can see considerable growth. Segments like Films may see a slower recovery but the fundamentals of the stocks remain the same.

 

Disclaimer:

This article is intended for informational purposes only, and should not be considered financial advice. You should consult a financial professional before making any major financial decisions.

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