While the Sensex continues to make and break records, media and entertainment stocks have not been far away from the limelight and at present offer good opportunities. At current levels, some of the media and entertainment stocks’ performance seem stupendous and have outperformed the index as well. Recently, stocks like Entertainment
Network (India) Limited, UTV Software, Balaji Telefilms and HT Media have appreciated by 102.20%, 93.63%, 92.16% and 39.85% (January 1, 2007 to July 9, 2007) respectively. Due to the gradual liberalization by the government, the sector has seen considerable amount of foreign and domestic investments. Even increasing private equity investments, Initial Public Offerings (IPOs) and mergers and acquisitions are acting as catalysts and fuelling growth. For the first quarter of 2007 there has been investment worth $640 million already by private equity firms in this sector. There are certain segments like the radio and news that continue to be strictly regulated, which leaves enough scope for opening up, hence more investments. These investments will definitely give a fillip to marketing and new product development in these sectors fuelling overall growth. Radio and entertainment segments are expected to grow even faster at a CAGR of 20%-30%. Like cousins in the IT sector, some media companies too are getting listed in global markets. UTV and Indian Film Company of TV18 have been listed in London’s AIM. Who knows, we might see some global acquisitions too.
Network (India) Limited, UTV Software, Balaji Telefilms and HT Media have appreciated by 102.20%, 93.63%, 92.16% and 39.85% (January 1, 2007 to July 9, 2007) respectively. Due to the gradual liberalization by the government, the sector has seen considerable amount of foreign and domestic investments. Even increasing private equity investments, Initial Public Offerings (IPOs) and mergers and acquisitions are acting as catalysts and fuelling growth. For the first quarter of 2007 there has been investment worth $640 million already by private equity firms in this sector. There are certain segments like the radio and news that continue to be strictly regulated, which leaves enough scope for opening up, hence more investments. These investments will definitely give a fillip to marketing and new product development in these sectors fuelling overall growth. Radio and entertainment segments are expected to grow even faster at a CAGR of 20%-30%. Like cousins in the IT sector, some media companies too are getting listed in global markets. UTV and Indian Film Company of TV18 have been listed in London’s AIM. Who knows, we might see some global acquisitions too.
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