CREST ANIMATION: SOME THOUGHTS:

BSE Code: 526785

CMP: Rs.24.20

Special Feature: Crest has an unmatched state-of-the-art technological foundation that is able to service the volume and complex projects at par with world-class facilities. Crest has implemented an end-to-end open standards-based technology infrastructure for its digital animation studio, the first of its kind in India. Its competitive advantage over most major studios is that of Time-Cost-Quality – its ability to provide high quality CGI-animation within a greatly reduced production schedule at a fraction of the cost. Through the Crest Advantage of Time-Cost-Quality, the company has become a revenue differentiating player in the global animation industry. The stock which was looking cheap at around Rs.250 considering the Business Profile of the company, is now available at the price of at Rs.24.20. On the charts the stock is about to explode as Stochastic, MACD and Bollinger Bands are in buy mode. Candle Stick Pattern is also looking good for the scrip....The stock has a strong support around Rs.22, which will be difficult to break on the downside with such wonderful results for Q4FY09.

The Company's shares are listed on the Stock Exchanges at Mumbai, (BSE), and on the National Stock Exchange of India Ltd. (NSE). The Global Depository Receipts (GDRs) of the Company are listed on the Luxembourg Stock Exchange.

THE TARGETS AND OTHER FEATURES ONLY TO THE PAID GROUPS.........

Crest was founded in 1990 by Shyam Ramanna as an advertising film production company. One of India's largest CG production companies with over 480 animation seats, Crest is widely acknowledged in India to have introduced animation and special effects to the Indian market. It is one of the first players in the Asian region to service the mainstream entertainment industry in the U.K. and the U.S. – demonstrating high quality, timely deliveries and competitive costs. Crest Animation is a full-service studio specializing in the development and production of digital animated properties for theatrical, television, home entertainment and interactive distribution for the global entertainment industry.

Crest is the undisputed leader in the Indian animation industry, and one of the leading CGI animation studios in the world.

Crest Animation leverages its India advantages of highly-skilled talent and cost efficiencies, and the creativity of its Los Angeles arm to provide high quality CGI (computer generated imaging) animation product to the global animation industry. Through the Crest Advantage of Time-Cost-Quality, Crest has become a revenue differentiating player in the global animation industry.

Crest's state-of-the-art technology and world-class facilities, together with its depth and breadth of experience, has earned it an unparalleled reputation in global animation circles. Crest has delivered more than 200 half hours of television and home video titles in CGI animation, working for such clients as Mike Young Productions, Mark Brown, Classic Media, Nelvana, American Greetings, Marathon and Nickelodeon.

Crest has produced animation for several international TV shows such as 'Jakers!' and 'Pet Alien' that have won many awards including Daytime EMMY, BAFTA, FICCI Frames 2005, Humanitas Prize for Children’s Animation, and a nomination for Annie Award.
Crest recently tied up with Lions Gate Family Entertainment to co-produce three movies. Currently under production is Crest's first feature film in partnership with Hollywood's Lions Gate Entertainment, the first of a three-movie deal for worldwide theatrical distribution. The work on the first feature film in Co-production with Lions Gate titled “Alpha & Omega” is on schedule and is progressing smoothly.

With this full-length feature, Crest has successfully transitioned into the theatrical segment. The transaction is significant in that it enables RCA to enhance its reputation as a recognized producer and co-owner of theatrical CG animation films and to expand its library of intellectual property rights.

The Company is focusing its operations to cater to its subsidiary´s feature film production and other co-production opportunities.
Industry professionals have also recognized the accomplishments of Crest as reflected in the numerous awards won and nominations received.
Results: The company after a long time came out with very good results (both on Y-o-Y and Sequentially) for both the TOPLINE AND BOTTOMLINE. The total income of the company for Q4FY09 came out to be Rs.14.14 Cr as against Rs.6.02 Cr in the same period previous year. The profit before depreciation and Tax (PBDT) for Q4FY09 came out to be whooping Rs.6.2 Cr against a net LOSS of Rs.3.85 Cr in the same period previous year. The Net Profit of the company for Q4FY09 came out to be Rs.2.8 Cr as against a net LOSS of Rs.6.64 Cr in the same period previous year.

Besides this the operating profit margin of the company for Q4FY09 came out to be 41.09% against a Negative operating profit margin of 47.06%. The net profit margin of the company for Q4FY09 jumped to 18% (look reasonable) as compared to year on year negative net profit margin of 107.06%. This is very good news for the shareholders of Crest Animation Studios Ltd.

HENCE WE CAN SAFELY CONCLUDE THAT CREST ANIMATION STUDIOS COULD BE A TURAROUND CASE, AND WHICH COULD GIVE MASSIVE RETURNS GOING FORWARD.