CDIL was incorporated on 7 May 1992 as a public limited company with the objective of setting up a 100% EOU plant for manufacturing compact discs. It has been promoted by Mr. Suresh Kumar, Ms. Rashmee Seengal and Mr. Santosh Grover. CDIL has set up an assembly unit at Navi Mumbai in collaboration with the Hyundai Corpn., Korea, to manufacture CD video players.
EPS was Rs.20.5. During Q3FY09, sales went up by 66% over Q3FY08 to Rs.10 cr. on 67% higher revenue of Rs.50 cr. During the first three quarters of FY09, sales rose by 96% to Rs.140 cr. whereas net profit shot up by 93% to Rs.27.5 cr. over the previous corresponding period. The 9 months EPS works out to Rs.28.7.
CDIL’s equity capital is Rs.9.6 cr. and with reserves of Rs.28.8 cr., the book value of its share works out to Rs.40. The promoters hold 17% in its equity capital, foreign holding is 2%, PCBs hold 9% leaving 72% with the investing public.
Coming to prospects, the global animation market (demand perspective) was estimated at US $59 billion in 2006 is now estimated to touch US $80 billion by 2010; global market for animated content and related services (developer's perspective) is estimated at US $25-26 billion and is forecast to cross US $34 billion by 2010.
The worldwide gaming market (demand perspective) stood at US $21 billion in 2006 and is expected to reach US $42 billion by 2010 growing at a CAGR of nearly 19% over 2006-10. The worldwide gaming content market (developers' perspective) was estimated at nearly US $7 billion in 2006 and is expected to cross US $13 billion by 2010, a CAGR of 17% over 2006-2010.
The Indian animation industry is expected to touch US $869 million by 2010 representing a CAGR of 25% over 2006-10. The Indian gaming industry, which was estimated at nearly US $48 million in 2006 is expected to cross US $424 million by 2010, representing a CAGR of 72% over 2006-2010.
For FY09, CDIL’s revenues are expected to touch Rs.190 cr. with net profit to Rs.37 cr., which would give an EPS of Rs.38.5.
At the current market price of Rs.34.50, the CDIL share is trading at a P/E of just 1. The share is recommended for decent gain in the long-term. Investment in this share is expected to bring sizable capital appreciation of above 50% in the long-term. The 52-week high/low of the share has been Rs.131/26.
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