Select media stocks have seen a sharp run-up on the bourses in December. Stocks like Saregama, TV-18, Zee Telefilms, Creative Eye, Tips Industries, Balaji Telefilms, Cinevista and Sandesh have surged 10-64% in December so far.
According to broking sources, most media stocks did not underperform the broader market during the ongoing bull run. As a result, there is some catching up to be done by media stocks.
“The initial public offering of Deccan Chronicle, which got a good response from investors, also attracted more towards media counters,” said a Delhi-based equity analyst with an online broking house.
Saregama India has shot up 64% since November 30 to Rs 132 on December 22 amid heightened volumes. The stock has touched its 52-week high of Rs 152.15 on December 20. Gains in the past one month have been as high as 80.45%. The company is expected to come out with a rights issue, said market sources.
TV-18 has surged 43.2% in December so far and closed at Rs 238.3 on December 22. This stock has also seen trading volumes grow manifold during the current month. The stock is currently trading at a price to earnings multiple of 55.7.
Media major Zee Telefilms has gained 13.7% between November 30 and December 22 to close at Rs 172.8. The stock has met with some correction after it touched a 52-week high of Rs 188.55 on BSE in December 15. According to market sources, Zee’s stock has been hit by the irregularities at its subsidiary, Padmalaya Telefilms. Zee is reported to be planning legal action against the promoters of Padmalaya Telefilms for the irregularities.
Stocks like Tips Industries and Cinevista Communications have also spurted 20-21% during the month. Other major gainers included Sandesh Ltd, Creative Eye, Balaji Telefilms, Mukta Arts, TV Today and NDTV. These stocks have gained 3-11% during the period.