Quite surprised at the lack of chatter about this stock. Perhaps it’s because of the low profile that the company maintains in the investor space. The fees paid in related party transaction seem to be high as well, and transperancy is low.
Some near term positives:
Ad spend is likely to come back as FMCG margins normalise. Plus, state and general elections will ensure that they get a large share of ad spend, given their popularity in the Hindi heartland. The political bias notwithstandwing in the TV biz, these guys produce pretty quality content on the digital side. Anecdotally, the number of paid partnerships on their videos seems to have increased significantly in the last two months. They’re are producing content for Amazon Prime. I don’t think any other Indian media business has the 100+ million subscriber base (organic) on YouTube that these guys do either. They seem to be much ahead of peers.
With 450-500 crores in cash, 180-200 cr in EBITDA and a market cap of 1200 crores, I think the co is a steal right now. Even other listed cos like DB Corp and Jagran do not come close in terms of having developed a strong digital footprint.
Disclosure: Invested and have a vested interest.
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