Eros International Media, a producer and distributor of Indian movies, shares gained over 5 per cent in the morning trade on Tuesday after the company assured investors and said that it has “strong” fundamentals. (Express Photo)
Eros International Media, a producer and distributor of Indian movies, shares gained over 5 per cent in the morning trade on Tuesday after the company assured investors and said that it has “strong” fundamentals. The reaction came following a slump on domestic and international bourses after an analyst raised questions about its business operations.
At 10.17 am, the share price of Eros International Media were trading 5.50 per cent up at Rs 373.90. The scrip opened at Rs 368 and had touched a high and low of Rs 381.70 and Rs 364.10, respectively, in trade so far. Sensex was down 0.34 per cent at 27,267.90.
In a BSE filing, the company said, “Analysts downgrade or upgrade stocks regularly and that as such is not a cause for concern. We would like to reassure our shareholders that there has been no material change to the previously announced strong fundamentals of the company. We continue to be market leader in the Indian film industry with a dominant market share of the global Indian box office.”
On Monday, shares of Eros International Media slumped as much as 20 per cent on BSE. Its parent company, Eros International Plc , lost 16.6 per cent in US trading on Friday.
The falls came after Wells Fargo, in a report on Friday, said Eros had seen a “sudden spike” in hard-to-understand revenue booked from the United Arab Emirates, calling that a “red flag” for some investors and adding it was not fully comfortable with so much revenue coming from outside India.
Wells Fargo also said it was uncertain about Eros’ user count for its ErosNow movie, TV and music streaming application, saying that numbers did not square with public web sites that track app downloads.
In a BSE filing, the company said, “Another analyst from Macquarie, Tim Nollen, published a very positive report and maintained outperform rating with a $25 price target, on the same day as the Wells Fargo report on Friday.”
(With inputs from Reuters)
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