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Stocks To Buy: 2 Bluechip Media Company Shares That Are Down 46% From Highs

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Markets seem to be consolidating in an around that 54,000 points levels. In fact, the Sensex is now down nearly 13% from their highs, hit last year. Nonetheless, here are a few stocks that are down sharply from their highs of nearly 45% and are leaders in their business.

 

TV Today Network

TV Today Network

The TV Today Network owns the Aaj Tak News Channel and is a leader in the Hindi TV news segment. The company also several other news channels namely India Today TV, Aaj Tak tez, Aajtak Desh (Multi language).

52-week high price52-week low priceCurrent market price
Rs 460Rs 236245

The yearly numbers for FY 2022 was rather impressive. The company reported a net profit of Rs 181 crores vs Rs 131 crores reported in FY 2021. The board of the company has recommended a Final Dividend subject to approval of members @ 60% viz Rs. 3.00 per equity share having face value of Rs. 5 for the Financial Year 2021-2022.

Now, the stock of TV Today Network is down nearly 46% from 52-week highs. The company reported an EPS of Rs 30.46 for the year ending March 31, 2022, which takes the p/e to just about 8 times. The company has very little or negligible debt, as also very high promoter holdings and the equity capital is very low at Rs 29.83 crores. We believe as economic growth gathers momentum the stock should do well. Buy the stock for long-term.

Zee Entertainment
 

Zee Entertainment

52-week high price52-week low priceCurrent market price
Rs 378Rs 224.25228

The stock of Zee Entertainment is down 40% from 52-week highs and again is a leader in the TV entertainment business in certain segments. The results for the march quarter are not yet out, but, we believe that the stock can do an EPS of around Rs 12 for FY 2022. The shares at Rs 228 are trading at a p/e of just 18 times, which is again way below the historical p/e averages that the company has commanded in the past. The merger with Sony Pictures is a big positive as far as the company is concerned and is likely to be EPS accretive. The merger of Sony and Zee will create a Rs 14,000-crore behemoth. It will also result in India's second largest media company after Disney-Star.

Apart from this overall, given the strong brand and the present discounting, we believe the stock deserves a better discounting. However, as is the case, if the markets fall further, the stock will, but from a long-term valuations look decent.

A word on the markets

A word on the markets

Markets have been exceedingly volatile, but, at the current levels, the indices may not have fallen too much, but select stocks have. We believe that the indices have held well, compared to the damage to the broader market. Looking at where the broader markets are, it looks like the indices are closer to the 40,000 levels on the Sensex. In fact, the Sensex has not fallen dramatically, thanks to heavyweights like Reliance Industries and ICICI Bank holding-up. If you are a long-term investor, you can nibble into stocks selectively.

Read more about: stock to buy shares to buy
Story first published: Thursday, May 26, 2022, 9:14 [IST]
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