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Bodhi Tree Multimedia Stock Soars on Netflix Deal, Analysts Predict 450 Rupees Price Target in 1 Year

By PNN | Updated: April 6, 2024 16:25 IST

Mumbai (Maharashtra) [India], April 6: : Bodhi Tree Multimedia Limited (BTML), a company currently trading at a modest ₹18 ...

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Mumbai (Maharashtra) [India], April 6: : Bodhi Tree Multimedia Limited (BTML), a company currently trading at a modest ₹18 on both NSE and BSE exchanges, could be on the cusp of a significant rise in the coming year. Analysts are predicting a potential surge to a staggering ₹450 per share, driven by a recently secured blockbuster deal with streaming giant Netflix.

Fueling the Fire: A Lucrative Partnership with Netflix

BTML, a player in the film and entertainment industry, might already be familiar to viewers who have enjoyed their content on platforms like Netflix, Amazon, and Zee. However, the company’s recent game-changer is a massive deal with Netflix.

Here’s the exciting part: BTML holds the rights to several popular books, and Netflix has agreed to pay a whopping ₹650 crores for the privilege of developing these stories into movies and web series. This deal offers BTML a trifecta of benefits:

Pre-Production Profit: BTML will secure a guaranteed profit of around 15% upfront, eliminating financial risk for developing the content.

Assured Funding: Netflix will shoulder the production costs of these projects.

Long-Term Revenue Stream: BTML retains ownership of 50% of the content rights, allowing them to earn royalties in perpetuity.

Market experts believe this strategic partnership with Netflix will be a major catalyst for BTML’s stock price. Their projections suggest a potential growth of over 2,400%, from the current ₹18 to a remarkable ₹450 within a year.

Strong Fundamentals Bolster the Case

Beyond the headline-grabbing Netflix deal, BTML’s financial performance paints a compelling picture. The company’s revenue is expected to witness a phenomenal increase of over 400% this year, jumping from ₹59 crores in 2023 to a projected ₹240 crores. Similarly, profits are anticipated to rise significantly, from ₹9 crores to ₹45 crores.

Adding to its appeal, BTML boasts a debt-free balance sheet, which enhances its financial stability and investor confidence. Additionally, the company’s promoters are demonstrating strong faith in its future by planning a further investment of ₹500 crores through preferential issue.

A Word of Caution

While the outlook for BTML appears bright, it’s crucial to remember that the stock market is inherently risky. This article is for informational purposes only and should not be considered investment advice. Consulting a financial advisor before making any investment decisions is always recommended.

A Promising Prospect for Savvy Investors

Taking into account the lucrative Netflix deal, impressive financial growth, and positive investor sentiment, Bodhi Tree Multimedia Limited emerges as a potentially rewarding opportunity for those seeking to expand their investment portfolio. With a current share price of ₹18 and a projected surge to ₹450 in the coming year, BTML is definitely a company worth keeping a close eye on.

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