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Recommendations

Tuesday, May 24, 2005

Sharekhan Stock Idea


Television Eighteen India 
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs350
Current market price: Rs280

Profit has a new destination

Key points

  • Television Eighteen (TV18) is India's leading business news broadcaster, running the English business news channel CNBC TV18. 
  • The news advertising space is likely to grow at a compounded annual growth rate (CAGR) of 25% over the next two to three years.
  • With its new Hindi business channel called Awaaz and the launch of a general English news channel in the near future, TV18 would be best placed to garner a higher share of the news advertisement market.
  • New distribution agreements could bring in pay revenues at a substantial premium to that as per the existing agreement. 
  • At 10.3x FY2007E earnings and 5.3x FY2007E EV/EBITDA, TV18 is the most attractive media stock both on growth basis and on valuation basis.
  • We recommend a Buy with a price target of Rs350.