Buy this Reliance Group stock, shares have fallen 43% in the last month

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Reason for the drop in TV18 Broadcast stock

Investors sold shares of TV18 Broadcast after Reliance and Viacom18 announced a partnership with Bodhi Tree Systems. Shares in the company have now fallen from a 52-week high of 82.55 rupees to the current market price of 43 rupees.

TV 18 Broadcast is part of the Network 18 group. The Network 18 Group has the largest channel package (56 national channels and 16 international channels), and a significant digital presence. The Group is 73.15% owned by Independent Media Trust, of which Reliance Industries is the sole beneficiary (the developer’s total stake is 75%). Network18 owns 51% of the TV18 subsidiary. TV18 in turn owns 51% of Viacom18 and 51% of AETN18. The group is the market leader in several genres (world’s top 20 paid news apps; top 2 digital news in India, #1 business news channel, top 3 national news, #2 premium Hindi GEC , Kids No. 1, English No. 1).

Solid TV and digital properties

Solid TV and digital properties

In English News, the group owns CNN News 18 and News 18 in a host of regional languages. The group owns Marquee Digital properties (MoneyControl, First Post, BookMyShow) and video OTT (VOOT) offers future-proof growth and content synergy.

According to FY 2020-21 data, Network18 was ranked #2 by Reach (UV) and #3 by Pageviews among Indian media groups. MoneyControl ranks 3rd in terms of unique visitors and 1st in terms of page views.

Should we buy the shares of TV18 Broadcast?

Should we buy the shares of TV18 Broadcast?

We are fairly neutral on stock, but recommend buying from TV18 Broadcast stock in small quantities. There is no doubt that the group owns some of the best news, entertainment and digital properties in the country. That said, the media industry is an industry where profits have been hard to come by. For the 2021-22 financial year, the company reported EPS of Rs 1.01.

This means that the stock is still trading at a price/earnings multiple of 41 times, based on the final P/E ratio. Investors, who are willing to take the risk, can buy in small amounts, just because the company owns some of the leading brands in the digital and TV space. Additionally, in the event of an economic recovery and an increase in advertising spending, we may see a significant improvement in business performance.

Warning

Warning

Investing in stocks is risky. Please consult a professional adviser before investing in the stock markets. The author and Greynium Information Technologies Pvt Ltd, would not be liable for any losses incurred. The author and his family do not hold shares in TV18 Broadcast. Markets are extremely volatile due to rising interest rates, therefore investors should exercise caution before investing.

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