Bodhi Tree Multimedia Limited

Bodhi Tree Multimedia Limited, started in 2013 and based in Mumbai - Maharashtra, is B2B company, wherein the primary business activity includes content production for television, films and digital platforms. The business activities operate in 3 verticals at present: TV – Hindi GEC (General Entertainment Channels), Digital Content (OTT), and Regional content in multiple languages.1) TV – Hindi GEC: Company produces contents for linear broadcast networks like Zee, Sony, Star, Disney, Viacom, Sun and others. These contents include daily soaps, reality shows etc.2) Digital Platforms (OTT): Company produces content for non-linear platforms such as Netflix, Voot, etc3) Regional Shows: Company also produces content in regional languages including Tamil, Marathi, Bengali, and Gujarati on both TV and OTT platforms Since inception, we have produced a robust line-up of more than 30+ shows for major Broadcasters & OTT platforms. We have produced more than 1000+ hours of content on Television and OTT. The shows have encompassed all genres - drama, thriller, horror, comedy and lifestyle. The company has produced shows across multiple languages – Hindi, Tamil, Marathi, Gujarati and Bengali. The client roster includes all the major entertainment networks. On the financial performance front, for the last three fiscals, BTML has reported turnover/net profits (loss) of Rs. 17.29 cr. / Rs. (3.34) cr. (FY18), Rs. 38.63 cr. / Rs. 0.36 cr. (FY19) and Rs. 27.47 cr. / Rs. 3.66 cr. (FY20). For upto 31.08.20 of FY21, company has posted total revenue of Rs 4.86 Cr and net profit of Rs 0.32 Cr. So company has shown zig-zag results. For the last four fiscals, company has posted average EPS of Rs. 587.12. The issue is priced at a P/BV of 2.61 based on its NAVs of Rs. 36.39 post issue. As per FY20 earnings, on fully diluted equity post issue, it is priced at P/E of 3.25. So as per FY20 earnings issue looks very fairly priced. If we annualise FY21 earnings, then P/E is 15.  As per RHP, comparison with listed peers is shown in above table. On BRLM's front Shreni Shares Private Limited has handled 2 IPOs in last three fiscals. Out of last 2 listing, both opened with premiums ranging from 0% to 2% on the day of listings. As of now from last 2 IPOs, both are trading above issue price. ( As on 01.10.2020 ) Company has shown zig-zag results and issue is priced at P/E of around 3.25 as per FY20 super earnings and P/E of around 15 for annualised FY21 earnings. So as per FY20 earnings its attractively priced and as per FY21, its fully priced. Growth opportunities in multimedia is very high in BHARAT, but there is very tough competition. So we give AVOID rating to this SME IPO.

• 1 MR. MAUTIK AJIT TOLIA
• 2 MR. SUKESH DEVDAS MOTWANI