Invest in Network 18

by Shabbir Bhimani on June 11, 2009

Its almost a months time from the last blogpost and I have come up with a new stock which I invested and thought I should be sharing them here. Its Network 18. Beware I am suggesting Network 18 and not TV 18. Current price of the stock is under 150.

Some of the points which I am considering for a long term investments are :

  • Colors become No.1 Hindi general entertainment channel
    Hindi general entertainment channel (GEC) Colors––a joint venture between Network 18 and Viacom––has superceded Star Plus as the number one GEC in the country. Star Plus was on top spot for almost a decade and its dethroned by Colors now. Revenues is likely to touch Rs 400-500 crore soon. Star, Colors and Zee will be competing with each other in the Hindi GEC space.
  • IBN in heavy growth phase
    The two IBN channels – CNN-IBN and IBN7 – are near cash breakeven or cash plus. The two CNBC channels are profitable. CNN-IBN was the highest watched channel on the electoral results day as well.
  • Hindi, Eng newspapers to be launched in an year
    They launched Forbes Magazine in India and would launch both the Hindi and English newspaper ventures within the next 12 months.

We see that there is a 100% growth for small business and websites and close to 50% for established business.

At close to 150 price today we have key ratios as

EPS (TTM) – 4.91 / PE – 30.90 / Book Value – 53.47

Looks Expensive on 09 earnings but if you look at forward earnings its a good investment buy.

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{ 5 comments… read them below or add one }

Dbaba August 6, 2009 at 7:13 am

Are you showing me money or expenditure… Think over it.

Reply

Shabbir Bhimani August 6, 2009 at 9:45 am

Depends on your perception as well. :D

Reply

awdhesh September 2, 2009 at 2:26 pm

investment in birla sun life equity Rs 2000 ,hdfc Rs1000 & reliance vision Rs1000 is good choice or i change my portfolio.

Reply

Shabbir Bhimani September 2, 2009 at 4:55 pm

Did you mean HDFC Stock or any Mutual fund of HDFC. If its Fund which one ?

Reply

Nifty Future Tips April 16, 2010 at 10:02 pm

i dont know what to do now

Reply

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