Top Story

e4m_logo.png

Home >> International >> Article

Sharp spurt in the prices of leading media stocks

28-May-2001
Font Size   16
Sharp spurt in the prices of leading media stocks

Media stocks, led by Zee Telefilms, Mukta Arts and Tips Industries, had a good run in the last few weeks. Interest in these stocks was generated and sustained for two main reasons. Media stocks had been beaten down so severely since the technology meltdown that they had to go up. Secondly, earnings of some of the media companies are far more visible and sustainable than those of the technology companies. This has prompted investors to hike their stakes in this sector.

Mr. Subhabrata Majumdar, analyst at Motilal Oswal Securities said, earnings visibility, stability of revenue and completely beaten down valuations are the factors responsible for the recent rally in media stocks.

Further buying is likely to be sustained by the fact that an average growth of 25 per cent, across the board, is predicted for this sector. This is also another reason for the feel-good factor working for the media sector.

Specific stocks that have been in the limelight include Zee Telefilms, which has just announced its intention to induct a foreign strategic partner. The ratings of Balaji’s serials, and its dissociation with Kerry Packer’s Nine Network, is what is driving buying in the stock.

On the other hand, the impending release of the Hrithik Roshan-Kareena Kapoor starrer Hindi movie “Yaadein” is driving buying at the Mukta Arts counter. This is the latest film from the Subhash Ghai stable.

Tips Industries, which bought the music rights of Yaadein for Rs 9.1 crore, is also headed north due to its association with the movie, which is being seen as a likely blockbuster. All these companies have seen their price-earnings ratios going up.

The sharp spurt in the prices of some leading media stocks is also partly due to the fact that there are limited number of good buys in this sector, according to Mr Kapoor of First Global. Many companies are small local players with the their revenue coming from one or two programs.

Tags

Kranti Gada joined the family business at Shemaroo in 2006 after a successful stint of over two years in marketing at Pepsi Co. She has been associated with the company for 12 years.

Exchange4media interacted with Jaspreet Chandok, Vice President and Head (Fashion) , IMG Reliance Pvt. Ltd on seamless brands integrations planned for Lakme Fashion Week, walking tall despite blazing trails like GST, demonetization and being a part of the larger cultural space

Their strategy to educate the consumers to make well informed decisions at all stages has worked out well.

Bobby Pawar, MD, CCO - South Asia, Publicis India, talks about his idea of chilling out

For their latest campaign ‘Peeoge toh Janoge’ (English translation: you’ll buy it if you taste it), Wagh Bakri and DDB Mudra gave Sakshi a new, rustic avatar.

Dabbawalas send some extra love along with dabbas to working professional across Mumbai

The Diamond Producers Association brings to life another rare moment as part of the ‘Real is Rare. Real is a Diamond' Campaign