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Hindi general entertainment channel (GEC) Colors––a joint venture between Network 18 and Viacom––has superceded Star Plus as the number one GEC in the country.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.