The indices are near peak levels and one needs to dig deep, to find good quality stocks. In fact, one needs a "bottoms-up" approach to investing and look at value. Here are 2 stocks that can be held for a period of 2-3 years.
TV Today Network
TV Today operates four news channels, namely Aaj Tak, India Today, Tez and Dilli Aaj Tak. The company also operates three FM radio stations under brand ISHQ 104.8 FM in Delhi, Mumbai and Kolkata. The company also has a solid digital footprint through Aaj Tak & India Today websites.
The company has through the years constantly grown revenues and reach, and is immensely popular, especially in its Hindi news channel "Aaj Tak".
The promoters holding in the company is extremely high at near 57 per cent and the brand equity of all of the channels is superb. The company has also received numerous awards and accolades in the past.
TV Today Network: Decent financial performance
The company in the past has reported decent financial performance. For the year ending March 31, 2019, TV Today Network reported a net profit of Rs 131.43 crores. This has taken the EPS to Rs 22.03. For 2019-20, the company could report a better performance, given that revenues could be boosted by election revenues.
We anticipate the company to do an EPS of Rs 25 at least for 2019-20. The stock is trading at just Rs 277, which discounts the EPS by around 12 times. In fact, the shares recently hit a 52-week low of Rs 258.
TV Today shares is one of the cheapest media stocks around and is a good bet, considering the brand equity, promoters strong holding and future earnings potential.
This is another stock that could be a great bet from a 1-2 year holding period. The bank's numbers were a shocker as it reported a huge net loss of Rs 1,507 crores for the quarter ending March 31, 2019. There is no doubt that the new CEO Ravneet Gill has been keen on cleaning-up the mess and ensuring a very high level of compliance. The company has taken numerous steps and has adopted very conservative steps, which is why the quarterly numbers were a shocker.
The cleaning-up could lead to some pressure on the stock in the next few quarters. However, thereafter we do envisage a return to normalcy and conservative approach.
Yes Bank is the fourth largest private sector bank in the country and we believe the stock should see a solid rebound once there is a turnaround in operations. By FY 2020-21, Yes Bank should be able to report an EPS of Rs 15. This means the stock is discounted only 10 times. A good share to buy keeping a 2-3 year time frame in mind.
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