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EROS International Media | Bse Code: 533261 | Volume: 40000 | CMP: Rs 149

The Q3FY14 numbers for Eros International Media are better than street expectations. The topline came in at Rs 432.7 crore and the EBITDA stood at Rs 135.6 crore, which increased by 17 per cent and 49 per cent respectively on YoY basis. The growth in the revenue was aided by the success of its movies such as Ramleela, Krrish 3 and other regional releases as this was a seasonally strong quarter. The newly launched channels, HBO Defined and HBO Hits, continue to receive encouraging response and are on air via Airtel, Dish TV and Tata Sky’s DTH network and also on cable platforms of Hathway and GTPL. The company also launched the premium offering of Eros Now during the quarter and plans to monetise the service. Going forward, the content pipeline of the company is exciting with movies such as Kochadaiyaan, Happy Ending, Action Jackson, due for release in FY15, which will add value to the stock. One can look at the stock from a medium-term perspective.

Cadila Healthcare | Bse Code: 532321 | Volume: 6970 | CMP: Rs 948 

Cadila Healthcare posted better than expected results for Q3FY14. Revenue grew 17 per cent on YoY basis to stand at Rs 1872 crore. On the operational front, the EBITDA witnessed a growth of 16 per cent on YoY basis to stand at Rs 300 crore. The PAT grew by stupendous 83 per cent on YoY basis to stand at Rs 190 crore. In all the above three parameters the company has been able to beat street expectations. After witnessing a slowdown for five quarters, the US business has seen a strong revival in growth. This is mainly led by new product launches and scale-up in existing portfolio. The management has indicated to sustain this going forward. The company is also confident of growing domestic formulations business. A healthy EBITDA margin expansion is likely to happen going forward which will be driven mainly by revival in key markets. One can look at the stock from a medium-term perspective.