praveen
26-11-2007, 12:18 AM
NDTV has moved ahead from being a pure news broadcaster to being an all encompassing media entity. NDTV today operates in a broad expanse comprising of news channels, general entertainment channel, lifestyle channels, global consulting, media process outsourcing, radio and web portals.
Investment Rationale
Strong core business
In the existing core news operations, the three channels - NDTV 24x7, NDTV Profit and NDTV India, are doing well in the face of competition. The English news channel NDTV 24x7 and the business channel NDTV Profit are in leading positions in terms of eyeballs in their respective genres. However, NDTV 24x7 does face strong competition from CNN IBN and Times Now.
A unique stand
NDTV’s stand to not become a tabloid and to retain credibility and high standards, has gown down well with advertisers and is expected to improve further going forward. The number of advertisers choosing NDTV has shown a CAGR of over 60% from FY04 to FY07.
New additions
NDTV Networks recently launched its lifestyle channel ‘NDTV Good Times’ in collaboration with Kingfisher. City specific channels’ plan has been initiated with the starting of Delhi specific news channel – ‘MetroNation’. The company has also launched NDTV Arabia, a 24-hour news and infotainment channel that will mark its entry into the Middle East and North African region.
On the global front...
NDTV has entered into a JV with Astro Broadcast, a Malaysian media house, to set up broadcast channels in Indonesia and Malaysia.. NDTV has a 20% stake in the JV as a consideration for its consulting income. In order to begin the journey towards globalization and to tap into global funding, NDTV Networks PLC is incorporated in
the United Kingdom. NDTV has a strong global presence with distribution tie-ups in most of the international markets including USA, Canada, Middle East, South Africa, UK and a few other European nations.
Other interests
NDTV is also aggressively scaling up its Internet venture. www.ndtv.com is the largest Indian news portal and is rated as the sixth most popular news portal in the world. NTDV is targeting advertising- as well as transaction-based revenues from the venture.Also, NDTV is a minority shareholder in FM radio channel Red FM.
Funding in place for expansion plans
NDTV Network (NDTV’s 100% subsidiary for non news businesses) raised $120 mn through a FCCB to fund the company’s expansion plans.
Valuation
Even though NDTV currently posts losses, there lies a promising growth story going ahead. At CMP of Rs 352.6 , the stock trades at a multiple of 9.24 times market cap / sales which we find attractive considering the strong growth potentials.
NDTV has a support at 332. Many a times it has taken a support and bounced from this levels. How ever technical parameters are showing negative divergence. Investors can look to buy the stock in decline.
Support: - 332 / 303 / 288. Resistance: - 391/ 427 / 496.
Break Out:- Closing above 392.
We recommend investors to go for staggered buying at all decline and maintain a stop-loss of Rs. 281 for the price target of rs.448 in short term and 544 in medium term.
Investment Rationale
Strong core business
In the existing core news operations, the three channels - NDTV 24x7, NDTV Profit and NDTV India, are doing well in the face of competition. The English news channel NDTV 24x7 and the business channel NDTV Profit are in leading positions in terms of eyeballs in their respective genres. However, NDTV 24x7 does face strong competition from CNN IBN and Times Now.
A unique stand
NDTV’s stand to not become a tabloid and to retain credibility and high standards, has gown down well with advertisers and is expected to improve further going forward. The number of advertisers choosing NDTV has shown a CAGR of over 60% from FY04 to FY07.
New additions
NDTV Networks recently launched its lifestyle channel ‘NDTV Good Times’ in collaboration with Kingfisher. City specific channels’ plan has been initiated with the starting of Delhi specific news channel – ‘MetroNation’. The company has also launched NDTV Arabia, a 24-hour news and infotainment channel that will mark its entry into the Middle East and North African region.
On the global front...
NDTV has entered into a JV with Astro Broadcast, a Malaysian media house, to set up broadcast channels in Indonesia and Malaysia.. NDTV has a 20% stake in the JV as a consideration for its consulting income. In order to begin the journey towards globalization and to tap into global funding, NDTV Networks PLC is incorporated in
the United Kingdom. NDTV has a strong global presence with distribution tie-ups in most of the international markets including USA, Canada, Middle East, South Africa, UK and a few other European nations.
Other interests
NDTV is also aggressively scaling up its Internet venture. www.ndtv.com is the largest Indian news portal and is rated as the sixth most popular news portal in the world. NTDV is targeting advertising- as well as transaction-based revenues from the venture.Also, NDTV is a minority shareholder in FM radio channel Red FM.
Funding in place for expansion plans
NDTV Network (NDTV’s 100% subsidiary for non news businesses) raised $120 mn through a FCCB to fund the company’s expansion plans.
Valuation
Even though NDTV currently posts losses, there lies a promising growth story going ahead. At CMP of Rs 352.6 , the stock trades at a multiple of 9.24 times market cap / sales which we find attractive considering the strong growth potentials.
NDTV has a support at 332. Many a times it has taken a support and bounced from this levels. How ever technical parameters are showing negative divergence. Investors can look to buy the stock in decline.
Support: - 332 / 303 / 288. Resistance: - 391/ 427 / 496.
Break Out:- Closing above 392.
We recommend investors to go for staggered buying at all decline and maintain a stop-loss of Rs. 281 for the price target of rs.448 in short term and 544 in medium term.