Today, when TV Today Network surged 20% to hit the upper circuit at Rs. 203, Ramesh Damani had two reasons to feel pleased.
The first reason is that Ramesh Damani is the single largest individual shareholder of TV Today with a massive chunk of 819,686 shares worth Rs. 16.63 crore. Investing legend Radhakishan Damani’s company, Damani Estate & Finance Pvt. Ltd, holds 896,000 shares while Billionaire Anil Ambani’s Reliance Capital holds 5,828,705 shares.
The second, and more important, reason for Ramesh Damani to be pleased is that he had recommended TV Today Network to his vast legion of fans just a few days ago.
In an interview to NDTV, Ramesh Damani gave a succinct reason why TV Today is/ was a great buy. “Digitization is happening in India, which is a huge game changer for the entire media industry. It means more subscription revenue, less carriage cost. And content business will also drive its margin”, he said, with his usual clarity of expression.
The advice was spot on because TV Today reported stellar Q1FY15 results with a two-fold increase in standalone net profit at Rs 32.79 crore as against a standalone net profit of Rs 11.98 crore during the April-June quarter of FY14. The total income increased 54.10% to Rs 137 crore as against Rs 88.90 crore of the same period a year ago.
Since Ramesh Damani’s recommendation on 22nd July 2014, TV Today is up a fabulous 53%.
Interestingly, Ramesh Damani’s other stock pick, Ricoh India, is also on fire as I reported earlier, giving a return of 27% since his recommendation.
Both stocks appear to have a long way to go even from here.
Ramesh Damani’s other two stock picks, NBCC (which, incidentally, is also recommended by P. N. Vijay) and Balmer Lawrie & Co haven’t yet taken off.
It shouldn’t come as a surprise if they start flying as well!