Spoon feeding of investing theory with practical stock recommendations
Shankar Sharma is a strong believer in the philosophy that novice investors like you and me have to be regularly fed a dose of investment theory coupled with practical examples of stock recommendations.
This strategy has a major advantage in that the theory helps us to think on our own feet and makes us self-reliant. Hopefully, someday in the foreseeable future, we will develop wings of our own and soar into the sky, finding multibagger stocks on our own, without needing the crutches of the ace investors.
Five fail-proof mantras for finding multibagger stocks
In the past, Shankar has provided us with valuable guidance. He was among the first to sound the clarion call that we should abandon large-cap stocks and aggressively buy small and mid-cap stocks. The call was timely because small and mid-cap stocks have outperformed their large-cap peers and delivered multibagger gains (See Forget Large-Cap Stocks. Micro-Cap Stocks Will Give Upto 300% Gains: Shankar Sharma).
Shankar also revealed to us his famous five fail-proof mantras for finding multibagger stocks. These mantras are simple and easy-to-understand. It is certain that following these will not only save us from ruin but fill our portfolio with multibagger gains.
However, too much theory makes Raju a dull boy. So, Shankar periodically feeds us with stock recommendations as well so as to keep us alert and interested.
Shankar hand-picks the stocks to ensure that they are safe and sound and will not collapse like a ton of bricks in a correction.
Mega Bull market in small-caps yet to start
If you are feeling jittery about the mega gains that small and mid-caps have already posted, you have to take heart from Shankar’s advice that a “big, new journey” is ahead of us. He has also equated the present bull market to “net practice” implying that huge gains are still waiting to be harvested.
BSE Small cap index within handshaking distance of 2008 highs. Thereafter begins a big, new journey. Abhi tak to net practice tha
— Shankar Sharma (@1shankarsharma) October 24, 2016
Shankar Sharma’s latest stock recommendation
“Give us an idea that will do well in Samvat 2073” Nikunj Dalmia asked Shankar point-blank, looking him straight in the eye.
“I like Zee Telefilms” Shankar said in his deep baritone.
When Nikunj looked at him quizzically, Shankar warmed up.
“For a long time it was underappreciated but what Subhash Chandra has done is almost like the IndiGo equivalent in the aviation space where people have been struggling. We all know it has been a big, big challenge but they have managed to re-invent themselves and it is a global company now and the stock is beginning to reflect that. I like that” he said.
Robust financial results
A cursory glance at the financials of Zee Entertainment reveals the veracity of Shankar’s recommendation. The Company has been reporting robust financial results.
In Q2FY17, Zee’s profit increased 27% to Rs 238.4 crore. The revenue grew 23% to Rs 1,695.4 crore.
EBITDA (earnings before interest, tax, depreciation and amortisation) surged 36.4% to Rs 489.2 crore. The margin expanded by 290 basis points to 28.9% on a YoY basis.
This strong performance was because of growth in advertising and subscription revenue.
“Advertising revenue continued to grow ahead of market on the back of improving viewership share and better monetisation of bouquet and growth in domestic subscription revenue was aided by catch up revenue in Q2,” Punit Goenka, MD and CEO said.
ZEE Entertainment launched five new channels in the domestic and international markets in Q2, it was disclosed.
|ZEE ENTERTAINMENT ENTERPRISES LTD – KEY FUNDAMENTALS|
|MARKET CAP||(Rs CR)||49,859|
|EPS – TTM||(Rs)||[*C]||10.32|
|LATEST DIVIDEND DATE||21 JUL 2016|
|BOOK VALUE / SHARE||(Rs)||[*C]||51.93|
|ZEE ENTERTAINMENT ENTERPRISES LTD – FINANCIAL RESULTS|
|PARTICULARS (Rs CR)||SEP 2016||SEP 2015||% CHG|
Open display of patriotism by Dr. Subhash Chandra
At this stage, we have to note that Dr. Subhash Chandra, the boss man of the ZEE group, has consciously adopted a pro-India stance. He is also openly pro-NAMO, pro-Government and pro-Army.
My dream is to see India being ranked amongst top10 in terms of #EaseofDoingBusiness,& I firmly believe that youth will make most out of it!
— Dr. Subhash Chandra (@subhashchandra) October 26, 2016
The credit to this aspirational mode of the nation surely goes to its leader PM @narendramodi ji !
— Dr. Subhash Chandra (@subhashchandra) October 23, 2016
— Dr. Subhash Chandra (@subhashchandra) October 24, 2016
Any number of words spoken or written are lesser, while applauding and recognizing the sacrifices made by these brave men on the borders!
— Dr. Subhash Chandra (@subhashchandra) October 28, 2016
Boycott of Pakistani serials by ZEE TV
In the wake of the tragedy at Uri where several brave soldiers were killed by Pakistani terrorists, Dr. Subhash Chandra rightly sensed that the public sentiment against Pakistan was very hostile. He announced that the Zindagi channel would no longer screen shows made in Pakistan.
Will not shut down Zindgi channel but revamp programming without Serials from Pakistan, we will have Indian subjects on Muslim community
— Dr. Subhash Chandra (@subhashchandra) September 24, 2016
Positive perception of viewers towards ZEE TV
Understandably, the move by Dr. Subhash Chandra to ban Pakistani serials from his channel has endeared ZEE TV to the Indian audience.
Dr.Subash Chandra take very good Decision on Zindagi Chanel to Avoid Pakistani Serials, he gives respect to our mother land 👍
— KALYANI (@dinesh_kalyani) September 25, 2016
@ZeeNews we all Indian appreciate and salute Dr subash chandra for closing zee zendgi Pakistani dramas
— Ravi Shankar (@RaviSha47420158) September 24, 2016
Salute to Dr. Subash Chandra ji a true nationalist. बाकी खबरिया दलालों को आईना दिखाने के लिए धन्यवाद🙏🙏 pic.twitter.com/Uk8nrfQ15P
— Neeraj Shukla (@neerajs33262376) September 24, 2016
Rivals committing hara-kiri by adopting alleged anti-India stance and creating hostile public perception
It is common sense that the media business is all about the perception of the public towards the channel. If the public have a positive perception, they will watch the channel and sending the TRPs soaring. Otherwise, they will boycott the channel and send the TRPs plunging.
The money that advertisers are willing to spend on the channel is directly proportional to the TRPs. Any channel that alienates the public is committing hara-kiri.
It is notable that in sharp contrast to the pro-India stance of Dr. Subhash Chandra, Barkha Dutt, the editor of NDTV, is infamous for her alleged anti-India and pro-Pak stance.
— गीतिका (@ggiittiikkaa) October 24, 2016
@BDUTT – you're a seasoned pro at creating anti-national and negative sensationalism. How much does ISI pay you for your proxy work?
— Sandeep Jaganath (@sandyjune1988) October 21, 2016
— Rishi Bagree (@rishibagree) October 19, 2016
NDTV : Non Disclosed Terrorism Venture
— चार लोग (@WoCharLog) October 31, 2016
— Rishi Bagree (@rishibagree) October 17, 2016
Whats the need of escorting an ISI agent ???
One thing I dont like about Indian Army is that they never Learn from their Past mistakes pic.twitter.com/qwft0fqOcc
— Rishi Bagree (@rishibagree) October 4, 2016
Translation: "The information I gave was authentic, precise, accurate and fruitful, please credit my payment into my account." pic.twitter.com/3XMiC5xgGo
— Nattha (@theFirstHandle) October 27, 2016
One publication claimed that Barkha Dutt had revealed secret army information while another alleged that she was providing GPS service to Pakistani terrorists since 2013.
.@HMOIndia Just Think about these PIX
TV visuals give terrain, porous areas
Mobile, give GPS data & location data via APP, Route Planning pic.twitter.com/1GDd0kvB4K
— #GauravPradhan 🇮🇳 (@DrGPradhan) October 4, 2016
Pakistan kabhi kabhi khud apne yahan hi attack karwa leta hai so that people like barkha can say pak is the biggest victim of terrorism 😢
— Maithun chaiwala (@Being_Humor) October 25, 2016
— Dr Anish Kumar™ (@draksbond) October 20, 2016
— Kunal Vimal (KV) (@kvQuote) October 20, 2016
Boycott by viewers and advertisers
In a trend that is worrying for investors in NDTV and the other channels, viewers and advertisers are openly announcing their resolve to boycott channels that pander to alleged anti-India sentiments.
As a advertiser I already stopped running campaign on Junkyard NDTV properties. I already boycotted them from media buying.
— Sidharth verma (@sidvermaa) August 7, 2016
— Sudhanshu Shekhar (@sudhanshu180) August 1, 2016
Boycott Anti National Channel NDTV also the product & company gives advertisement in NDTV to save the nation . pic.twitter.com/pgs69dBvNC
— TRUE INDIAN (@yeskaytweets) July 9, 2016
— mariappan (@mariappanl) February 19, 2016
Sharekhan recommends buy of Zee Entertainment
ZEE is headed for “long-term growth out-performance“: Kotak
Kotak Securities has recommended a buy of ZEE Entertainment on the sound logic that “Zee is charting its path to long term growth out-performance by augmenting content capabilities, enhancing regional footprint and expanding in new verticals and markets and more importantly executing with solid profitability and capital allocation”.
ZEE has “Multiple growth levers“: Motilal Oswal
Motilal Oswal has recommended a buy on the basis that ZEE has “multiple growth levers across verticals” such as:
(1) improved visibility of content
pipeline for Zee TV,
(2) headroom for &TV to improve inventory utilization and OPH -led ad monetization,
(3) new launches coupled with improved viewership within the regional portfolio, and
(4) International expansion beyond its staple South Asian territories.
ZEE is an “Excellent compounding story“: IDBI Capital
IDBI Capital has called ZEE Entertainment “an excellent compounding story“. It is pointed out that all four phases of digitization will be completed by the end of CY17 and that large broadcasters like Zee are best placed to take advantage of the same. It is also stated that while the television advertising market is expected to grow at a CAGR of 15% over the next three years, ZEE will outperform and post a strong 29% growth in FY16.
It is obvious that Shankar has carefully applied his mind before making his stock recommendation. ZEE Entertainment is a dominant player in the media sector. It has a visionary and dynamic management. Its valuations are reasonable. Novice investors who act on Shankar’s recommendation and tuck into ZEE are unlikely to be disappointed in the long run. Instead, they are likely to pocket big bucks!