Led by TV Today Network, select television stocks are on a rising-spree. TV Today, NDTV and Sun TV Network have jumped 10-70 per cent over the last one-month.
TV Today, whose bouquet includes Aaj Tak and IndiaToday, gained 15.05 per cent on BSE to close at Rs 413.10 per share on Monday. Kotak Mahindra International bought 4.25 lakh shares of TV Today, amounting to 0.75 per cent stake in the company, at Rs 392.21 apiece in a block deal. This triggered a buying spree in TV Today shares, brokers said. Over the last one-month TV Today has risen by an astonishing 69.76 per cent.
Analysts attributed the spurt in TV Today to the company’s plans to foray into regional news channels. For the first time, TV Today has started sharing its business data with investors/analysts.
“TV Today didn’t meet investors earlier, now the company has stared meeting investors and sharing business data,” said the stock research head of a brokerage house. “Aaj Tak is doing well, they would look at some more regional channels to provide a better bouquet like Zee. They have now started speaking their mind out.”
Sun TV stock is up 10.41 per cent. Star India bagging the global IPL broadcast right will benefit all IPL franchisees. SUN TV owns Hyderabad IPL team, Sunrisers Hyderabad.
Star India has bagged the rights to beam IPL matches for Rs 16,347.50 crore for the next five years. It is considered the most expensive deal in cricket broadcasting history.
At present, around 54 per cent of revenues from the IPL central pool, largely media rights, is shared with the franchisee (proportionate share based on team’s standing in that particular year), said a report from ICICI Securities. “It is debatable whether IPL will be profitable for Star India (media rights), Sun TV owner of Sunrisers Hyderabad has emerged clear winner as higher media and sponsorship rights will bolster its revenues,” said a report from Edelweiss Securities.
Shares of New Delhi Televison (NDTV) rose after a boost the company received from a Delhi High court order passed on August 31. NDTV shares are up 44.24 per cent in the last one-month period. The Delhi High Court upheld the decision of the Income Tax Appellate Tribunal (ITAT) allowing claim of deduction of Rs 15.76 crore by the company under section 80HHE of the Income Tax Act for assessment year 1999-2000. News reports of an entrepreneur buying majority stake in NDTV also helped the stock to register a rise.
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