Eros International, the producer and distributor of Bollywood films backed here at 400p in late 2007, is thriving in a fast growing Indian media and entertainment sector forecast to be worth $30bn (£16.6bn) by 2012.

Though the share price has slipped back significantly, a recent AGM update from the company made pleasant reading, with Eros flagging up a good start to the current year, with trading in line with expectations.

Typically making most of its money in the second half year, reflecting the timing of Indian holidays when the larger-grossing films are released and TV syndication deals are done, the company continues to secure content, distribute new films and ‘monetise’ its catalogue.

This year, it has inked a number of content deals and alliances, among them a multi-film content licensing deal with Rupert Murdoch’s Star TV. It also has its eye on select acquisitions.

Last year, Eros achieved record full-year profits of US$45.5m (£25m), an increase of more than 47%, on turnover up 70% to US$113m (£63m). This year, analysts are looking for £38m pre-tax and earnings per share of 25p, from a top line £88.5m – spicy margins indeed. Trading on less than twelve times this year’s earnings, there is no sense selling at current lowly levels.

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Eros International	AIM	£184.44m	160.00p	0.00p
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