Subhash Ghai-backed Stock under Rs 120, jumps 40 per cent in 2 days as company inks pact with Zee Entertainment for 37 films
The stock is up by 90 per cent from its 52-week low of Rs 61 per share and the company’s 55.34 per cent stake is owned by Subhash Ghai.
Mukta Arts Ltd, the production house of renowned filmmaker Subhash Ghai, witnessed a significant rally in its share price on September 26, 2024. The stock surged & hit a 20 per cent circuit, reaching a 52-week high of Rs 116.50 on the Bombay Stock Exchange (BSE). The shares of the company saw a spurt in volume by more than 22.70 times on BSE. At the closing bell, shares of the company were trading at Rs 110.35 per share, up 13.66 per cent. This sharp-up move was primarily driven by the company's recent agreement with Zee Entertainment Enterprises Ltd (ZEEL).
The agreement, signed on September 24, granted ZEEL the satellite and media rights to 37 Mukta Arts films for a period of six years, starting from August 25, 2027. The total consideration for this deal is 25 per cent higher than the previous agreement between the two companies.
Mukta Arts' impressive library of films, including 35 blockbusters, has been a key factor in attracting such lucrative deals. The company's diverse operations, spanning film production, distribution, exhibition, and television content creation, have also contributed to its financial success.
DSIJ’s ‘Micro Marvel' service recommends micro-cap stocks with the potential to grow multifold in long run. If this interests you, do download the service details here.
While the exact financial terms of the Zee deal remain undisclosed, the substantial increase in consideration suggests a significant boost to Mukta Arts' revenue. The company's partnership with ZEEL, a prominent player in the Indian media industry, is expected to provide long-term benefits.
In the quarter ended June 2024, Mukta Arts reported a net profit of Rs 98 lakh and net sales of Rs 7.02 crore. The company's strong financial performance, coupled with the recent Zee deal, has instilled confidence in investors, leading to the surge in its share price. The stock is up by 90 per cent from its 52-week low of Rs 61 per share and the company’s 55.34 per cent stake is owned by Subhash Ghai. Investors should keep an eye on this micro-cap stock.
Disclaimer: The article is for informational purposes only and not investment advice.