COMPACT DISC India Ltd. (104/-) Target-170,350

BULLISH STOCK.... COMPACT DISC India Ltd. (104/-) (10/- Face Value

share) TARGET 350/-.



Quoting BSE COMPACT DISC India Ltd Trading in BSE at 104/- in B2 Group.

10/- FaceValue. 170/- for Short TermTarget & 350/- Long Term.

Strong Fundamentals.

I am bullish on this stock.

Today The company has declared its quarterly results for quarter ending December 2007.

It has reported quarterly sales of Rs. 30.11 crores and net profit of Rs. 6.03 crores. On an equity capital of Rs.9.57 crores, the quarterly EPS is Rs. 6.29 (Rs.25.16 annualised). The NPM has been maintained at 20%.

Compact Disc India Limited (CDIL) is one of the largest animation outsourcing organization in South Asia, presently executng projects worth USD 40.00 Million. The company is into production of outsourcing & co-production projects. The company has recently been awarded new animation film project worth USD 19.80 Million '3000 B.C'.

The company is into production of animation films, game development and motion pictures. The product range covers all the segments of entertainment i.e. big screen (theatres), small screen (home videos & television) and personal screen (personal computers).

Animation Outsourcing is the new wave in outsourcing. A wave driven by shortage of skilled labor, by the imposed competition of globalization, by the need for speed and by the economies of scale that promise bottom-line benefits of reduced costs, improved quality, enhanced efficiencies and sharpened focus on core activities. Owing to the huge availability of skilled talents and a robust communications backbone, Indian production houses have caught the fancy of global animation and game production companies. Having sensed this trend, the company has aligned its competencies and positioned itself as an animation outsourcing partner.

The company has entered into an exclusive animation outsourcing contract with iMedia Ventures Ltd., a part of world's largest media house and a pioneer in Digital Entertainment. This group has presence in 28 countries with an annual turnover of US$239.60 million for the year ended on December 31, 2006.

The company enjoys membership of the following prestigious organizations:
- Federation of Indian Chambers of Commerce and Industry (FICCI)
- Confederation of Indian Industry (CII)
- Indian Motion Picture Producers' Association (IMPPA

Also promoters are going to allot pref allotment to themselves and also allot shares to PE players. One of the boarder here has given a value of 140rs for PE players allotment..



It is woth noting that both the Top Managment people i.e. Chairman Sureshkumar and Managing Director Gautamji are well qualified M.B.A.s and very competent in Animation field.

This company has a great future.



Here are the estimated financial projections:

FY2007-08 FY 2008-09


Sales Revenue 103.00 Cr. 150.00 Cr.


Profit After Tax 21.50 Cr. 33.00 Cr.


EPS Rs.22.5 Rs.34.5

Even if we give a conservative P/E of 5, It should be trading at Rs.170+ based on FY 2008-09 earnings. So there is a long way to go. Investors with faith in CDIL management and having patience will definitely earn a lot.

Note: EPS was calculated based on the current equity.

Will not disclose my one and two year targets for this scrip as it may make your eyes pop out!



Enter current price at 104/- Short term Target 170/- Long Term Target 350/-

Strong Fundamentals.