Eros: Strategic Value And A $20 Target For The Netflix Of India

For myself, the golden age of Bollywood was the 1970s with such classics as Sholay, Pakeezah and Kabhi Khabie (not necessarily spelled correctly). However, there is little doubt that since that time with the advent of firstly VHS and then DVD and online, the area has skyrocketed. But it is perhaps as much from a strategic perspective that Eros International, the Indian films producer and distributor is in the limelight at the moment.

The shares have been rising off the back of speculation what is effectively the Netflix or Amazon Prime of India is in the sights of the US giants, given the stranglehold Eros has in its space. Put simply, if the majors want to make it in India any time soon, they will have to acquire this company. Recent newsflow has centred around a deal with Roku and the latest trading numbers, but it could very well be that the bigger strategic picture is what counts here.

erosus

The charting picture arguably provides the best bullish trigger at the moment, with multiple support points above the 200 day moving average at $11.24 since the beginning of September. The setup currently is that as little as an end of day close back above the 50 day moving average at $13.46 should be enough to take the stock up to the 2017 price channel top at $20 over the following 2-3 months.

Disclaimer

Zakmir.com is a purely journalistic website – Zak Mir is a member of the NUJ. There is no intention here of providing financial advice and absolutely no interest in speculating in the companies mentioned. It is  recommended you seek an independent professional opinion before deciding whether or not to take any action with regard to anything written here.

Author: Zak Mir

Financial commentator, interviewer, technical analyst

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