Mukta Arts Drops As New Release Bombs
Mukta Arts was the biggest loser among media stocks on Monday as its new Hindi release 'Badhai Ho Badhai' failed to make a impression on the box-office.
On the Bombay Stock Exchange, the stock settled down 9.55 per cent at Rs 111.25, but off from its intra-day high of Rs 130 and intra-day low Rs 107.
Over 6.20 lakh shares changed hands on the BSE. On the NSE, 11.64 lakh share were traded. Last Friday, the stock had risen 4 per cent to Rs 123 on the new film's debut in anticipation of its success.
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Dealers at local brokerage houses said, "Foreign funds and institutions are believed to be selling on the counter on poor public response to the company's new film release 'Badhai Ho Badhai'." Meanwhile, analyst said that there were no fireworks from the film. There was some speculation, however, that the film would have a modest opening.
But analysts are still awaiting reports of the weekend's takings of the film, but going by initial public reaction, the movie seems to be getting poor reception. Almost all analysts have now given a short-term sell on the scrip. They expect Mukta Arts to slip further.
Meanwhile, the company has lined up a slew of new releases (films) for the current calendar year - Ek aur Ek Gyara and Chandni Chowk, which are expected to be released in Q4 of calendar 2002.
While the company has four films in the pipeline for 2003, also. In the next two years, Mukta Arts plans a wide variety of movies in various categories including comedy, action, thriller, and romance.
For the first quarter ended 31 March 2002, the company registered a net profit of Rs 5.5 crore on net sales of Rs 1.5 crore. Net profit includes an exceptional item of Rs 6.4 crore coming from dividend income. Currently, the promoters' holding in the company is 68.33 per cent.