Hazoor Media - Rs.11.25 (Rs.4 paid-up)

Incorporated in Hazoor Media 1992, Hazoor Media & Power Ltd (HMPL) originally known as Hazoor Hotels & Properties Ltd was a subsidiary of Sunbeam Infotech Ltd. Later in 2002-03 as per the scheme of arrangement, it acquired the Property & Hotels Division of its parent company and became an independent asset rich company. Today, it is heading to become a global player in the media sector and a national player in the power sector.

HPML has successfully embarked in the production of media content in diversified software categories viz. entertainment, film and film based programmes, sitcoms, news and current affairs, game shows catering to the demands of media companies in the international market. It has state-of-the-art equipments in its warehouse and provides them on hire to film and TV serial producers. The company has now drawn a strategy to provide trained and qualified manpower services along with the equipment to its clients. HMPL also provides infrastructure services like shooting locations, floors, studios, post production processing facilities, filming equipments and qualified trained manpower to all major media companies and channels including Star Network, Zee Network, Sahara Television, Sab TV and a host of religious and spiritual channels like Sanskar, Sadhana, Aastha. Importantly, it has a large tract of land admeasuring 1,22,000 sq. mtrs. worth over Rs.28 cr. in market value near Sahara lake city at Lonavala near Mumbai, which is utilized as a shooting location. The management is currently identifying a location in Columbia for setting up its marketing office in USA to maximize its business as a media content provider. Apart from this, the company also wants its ‘Hazoor Media School’ to become a leading centre for media education with state-of-the-art technology and infrastructure to focus on quality education. On the power front, HMPL is setting up 10 MW co-generation power project for generation and distribution of grid quality power from biomass resources using steam turbine technology in the state of Maharashtra. Moreover, HPML has entered into a joint venture project with Omkar Petrochemicals Limited to jointly set up a project with an installed capacity of 30000 litre per day to manufacture Ethanol – an Energy Fuel. In future, it may takeover Omkar Petrochem and merges it with itself.

Fundamentally, HMPL is quite strong and at the current price seems reasonably cheap. For the six months ended 28 Feb 2005, it has reported a net profit of Rs.2.4 cr. on net income of Rs.8.9 cr. Its equity capital is Rs.3.5 cr. and with reserves of Rs.13 cr., the book value of the share works out to around Rs.20 on the face value of Rs.4 per share. The company has a healthy operating margin of around 35%. Considering the company’s aggressive plans it is expected to post an EPS of Rs.6 for FY05. To fund its future growth plans, HPML may go for equity dilution but investors can still buy at the current market price (CMP) as the scrip has the potential to double in 12~15 months. A strong buy.