Television Eighteen India
Cluster: Emerging Star
Recommendation: Buy
Price target: Rs350
Current market price: Rs280
Profit has a new destination
Key points
- Television Eighteen (TV18) is India's leading business news broadcaster, running the English business news channel CNBC TV18.
- The news advertising space is likely to grow at a compounded annual growth rate (CAGR) of 25% over the next two to three years.
- With its new Hindi business channel called Awaaz and the launch of a general English news channel in the near future, TV18 would be best placed to garner a higher share of the news advertisement market.
- New distribution agreements could bring in pay revenues at a substantial premium to that as per the existing agreement.
- At 10.3x FY2007E earnings and 5.3x FY2007E EV/EBITDA, TV18 is the most attractive media stock both on growth basis and on valuation basis.
- We recommend a Buy with a price target of Rs350.