A new but fancied stock of the capital market.Raj & Sun Tv has come up as rivals where in terms of sheer size, in terms of stock price also in terms of Financials, Sun TV is way ahead.
Hot news In the Counter
1. A few days back, the company was in the news and the stock price had risen on rumours of the company getting into the print media. But the company clarified that at present it has no such intentions though it did make it clear that it is looking at the option of selling 5-10% of its equity to PE investors.
2. The company recently launched a news channel – Raj News and the company is banking on this to increase its ad revenues. It also expects revenue to flow in from Arasu Cable Corporation, starting from Q3 of current fiscal. It has also got into production of Telugu and Tamil movies and has earmarked Rs.30 crore for film production foray. It is currently working on four movies, which are set for release any time now.
3. The tussle, politically and on the viewer ship turf between Raj and Sun would continue. M. Raajhendhran, managing director of Raj TV is a part of the ruling party of Tamil Nadu, the Dravida Munnetra Kazhagam but the MD maintains that his channel is politically neutral.
About The Financials
For the first quarter ended 30th June 2008, the company posted a 16% rise on a YoY in net revenue earned at Rs.17.50 crore. On this, it posted a 8% rise in PAT at Rs.5.60 crore. The company states that this itself is an achievement as in the face of the rising cost of manpower and content, the fact that it has managed to maintain its profit levels is encouraging.
About The Stock
The stock touched a new low at Rs.55 on 10th October 2008. After analyzing the details of both the companies it could be deduced that Sun Tv would be a better option of investment.
Disclaimer: I do not have any personal holding in this stock.