Subhash Ghai's firm soars 18% in a day after pact with Zee; here's why

Shares of Mukta Arts skyrocketed 18.2 per cent at Rs 95.70 per share intraday on the BSE. Mukta Arts share price surged on Wednesday after the company announced that an assignment agreement and term Sheet was executed between the company and Zee Entertainment Enterprises for satellite and media rights of 37 films of the company for a limited period of 6 years commencing from 25th August, 2027.

The company did not disclose the total transaction value, however, said that the deal was executed for a total consideration of 25 per cent more as compared to previous agreement and as per the terms and conditions entered between the company and Zee. 

Mukta Arts, led by the renowned Hindi film personality Subhash Ghai, is a comprehensive entertainment company engaged in film production, television content creation, film distribution, and equipment hiring for filmmaking. Notably, it was the first Hindi film production company to enter the capital markets. Founded on September 7, 1982, Mukta Arts boasts a successful track record with numerous hit films to its name.

The company is also involved in renting out cinematic equipment and owns the modern studio AUDEUS, which features cutting-edge technology for world-class production and post-production services. Additionally, the company has expanded its operations into the distribution sector, further enhancing its presence in the entertainment industry.

The company reported a revenue of Rs 27.52 crore in the financial year 2023-24 (FY24), and recorded a net profit of Rs 10.33 crore during this period. In the first quarter of FY25, the company registered net sales of Rs 7.02 crore, while logging net profit at Rs 0.98 crore in the June quarter of FY25. 

Tha market capitalisation of Mukta Arts is Rs 214.90 crore, according to Bombay Stock Exchange (BSE).

Its shares are trading at a price to earnings multiple of 20.31 times with an earning per share of Rs 3.98. The 52-week high of the company’s share is Rs 98.35 while its 52-week low is Rs 61 a piece. 

At 9:57 AM, Mukta Arts shares were trading 17.09 higher at Rs 94.74. In comparison, the BSE Sensex was up 0.05 per cent at 84,957 levels.