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Shankar Sharma’s Latest Stock Pick Prospers Even As Rivals Perish In Anti-India Stance



Shankar Sharma has sensibly recommended a media stock which is known for its strong pro-India stance. Its arch rivals which are notorious for their alleged pro-Pak and anti-India stance are withering in the wake of boycott by viewers and advertisers

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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.

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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
PARAMETER VALUES
MARKET CAP (Rs CR)   49,859
EPS – TTM (Rs) [*C] 10.32
P/E RATIO (X) [*C] 50.31
FACE VALUE (Rs)   1
LATEST DIVIDEND (%)   225.00
LATEST DIVIDEND DATE 21 JUL 2016
DIVIDEND YIELD (%) 0.43
BOOK VALUE / SHARE (Rs) [*C] 51.93
P/B RATIO (Rs) [*C] 10.00
ZEE ENTERTAINMENT ENTERPRISES LTD – FINANCIAL RESULTS
PARTICULARS (Rs CR) SEP 2016 SEP 2015 % CHG
NET SALES 1695.44 1378.59 22.98
OTHER INCOME -39.67 5.2 -862.88
TOTAL INCOME 1655.77 1383.79 19.65
TOTAL EXPENSES 1206.22 1053.06 14.54
OPERATING PROFIT 449.55 330.73 35.93
NET PROFIT 243.97 190.15 28.3
EQUITY CAPITAL 96.04 96.04 –

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.

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.

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.




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.

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.

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.





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.

Conclusion

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!







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7 Comments
  1. Dman1981's Gravatar Dman1981
    November 1, 2016 at 6:10 pm | Permalink

    Zee tv and Times now are absolute champions. I am proud of both channels, and any Indian who owns the stock has my support. Bharka dutt, Sagarika, and that other IBN idiot, are the old congress style losers who bow down to white people and fight for terrorists. They are absolute pathetic beings and very anti national. I will sum it up very easily. Those 3 would laugh at you if a terrorist killed your family, and they would blame you for hating Pakistan. This is what they do everyday when they openly taunt our soldiers and call their wives pathetic. I was stunned by their comments and am shocked that they have not been fired and prosecuted for hate speech against Indians. All I request to every strong Indian is please dont watch their channels, and please boycott their hate and vile malovelance.

    Reply
  2. Abhishek Mittal's Gravatar Abhishek Mittal
    November 3, 2016 at 7:01 pm | Permalink

    Good post. Not only have you recommended us a good stock but also exposed the anti-national elements in the Indian media. Desi channels like ZEE will surely benefit from the current scenario because they care for the sentiments of common patriotic citizens like you and me.

    Reply
  3. Raaz's Gravatar Raaz
    November 4, 2016 at 11:08 am | Permalink

    http://toi.in/x8AFKZ/a20li

    Reply
  4. Raaz's Gravatar Raaz
    November 4, 2016 at 11:10 am | Permalink

    Should be shot for TREASON!!!

    http://toi.in/x8AFKZ/a20li

    Reply
  5. Nrupen | Techno Fundamental Analyst's Gravatar Nrupen | Techno Fundamental Analyst
    November 4, 2016 at 1:08 pm | Permalink

    Zee Entertainment is business whose stock has unlocked its full value. For trading it is good, investment wise it is for sure a very idea.

    Reply
  6. Puru Ji's Gravatar Puru Ji
    November 5, 2016 at 8:22 pm | Permalink

    This coverage on ZEEL is fine, but is seems concentrating more on Barkha.

    Reply
  7. amit's Gravatar amit
    November 7, 2016 at 1:01 am | Permalink

    VIDLI RESTAURANT is running chains of restaurants serving hygienic standardize Veg food items mainly south indian food under brands “Vithal Kamat” and’ Kamats’.
    This is 3rd year of operations and listed on BSE sme platform in Feb 2016.
    Presently they have 72 active franchisees and the run rate for franchisee addition is increasing at faster pace.
    Has hired Mr Lowell Farkas as consultant who headed PANERA fast food chain in USA .
    All the systems and centralized supply chain are in place now.
    Opened outlets in Gurgaon, manali, Shimla , Gujrat and opening one at Delhi Airport soon.
    Recently opened outlet outside Meera road station and planning to open more outlets on Mumbai local train stations .
    All franchisees are registering healthy year on year same store growth in sales.
    The half yearly results on 8th Nov 2016 are expected to be above market expectations which will bring the P.E ratio at reasonable levels.
    Company plans on track to add 400 franchisees till the end of fy 18, in that case they will get a PAT of 6-7 crores. Market gives a PE of 55-60 for QSR high growth consumption sector story.
    So the market cap can reach a level of 400 crore plus levels.
    Presently it have a market cap of 49 crores so its a sure shot 10 bagger from here.

    Reply

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