Multi Baggers

Ashish Chugh

Investment Advisor

5.30 AM Jan 1st 1970

TV TodayNetwork

BSE ID : 532515 NSE ID : TVTODAY

RECOMMENDED PRICE 54.60

PEAK FROM RECO 557.95 921.89%

CURRENT PRICE 223.70 Resource id #17

TV Today Network Ltd, a part of India Today Group, is one of India's leading news broadcasters. TV Today has been able to improve its advertising and subscription revenues and reduce carriage fee. The stock looks attractive at its CMP and on declines.

TV Today Network

TV Today Network Ltd (TVTN), a part of India Today Group, is one of India's leading news broadcasters. Living Media Group has interests in magazines, newspapers, books, radio, television, printing and the Internet. TVTN is engaged in news telecast and broadcasting operations. TVTN operates in two segments - TV Broadcasting and Radio Business. TV Broadcasting business consists of four News Channels - Aaj Tak, Headlines Today, Tez and Dilli Aaj Tak. TVTN also operates FM radio station Oye! 104.8. FM channel is focusing more on Bollywood with tagline Sabse Filmi.

Financials:

The latest financials of the company are given as under:

Quarterly - Latest results - T.V. Today Network Ltd (Curr: Rs in Cr.) as on 04/08/2013.

Particulars	Quarter Ended	Quarter Ended	Quarter Ended	Year Ended	Year Ended	Year Ended
	(Jun 13)	(Jun 12)	(% Var)	(Mar 13) (12)	(Mar 12) (12)	(%Var)
Sales	88.85	70.57	25.9	312.44	308.18	1.4
Other Income	1.64	1.93	-15	7.37	5.62	31.1
Other Operating Income:
PBIDT	25.6	3.48	635.6	41.94	31.54	33
Interest	1.03	0.23	347.8	3.34	1.08	209.3
PBDT	24.57	3.25	656	38.6	30.46	26.7
Depreciation	6.33	3.61	75.3	21.03	14.04	49.8
PBT	18.24	-0.36	LP	17.57	16.42	7
Tax	6.26	-0.01	LP	5.36	9.82	-45.4
Deferred Tax	0	0	-	0	-3.92	100
PAT	11.98	-0.35	LP	12.21	10.52	16.1

Share price - latest equity - T.V. Today Network Ltd (curr: Rs in cr.) as on 04/08/2013

Latest Data
Latest Equity(Subscribed)	29.73
Latest Reserve	294.86
Latest EPS -Unit Curr.	2.24
Latest Bookvalue -Unit Curr.	54.59
Face Value	5
Book Value (with YTD NP) - Unit Curr.	55.48

Stock Exchange	BSE	NSE
Latest Market Price--Unit Curr.	54.6	54.4
Latest P/E Ratio	24.38	24.29
Latest P/BV	1	1
52 Week High -Unit Curr.	93.8	93.85
52 Week High-Date	1-4-2013	15-1-2013
All Time High -Unit Curr.	225	310
All Time High-Date	16-1-2004	16-1-2004
52 Week Low -Unit Curr.	53.4	53.5
52 Week Low-Date	30-7-2013	30-7-2013
All Time Low -Unit Curr.	41.1	34
All Time Low-Date	25-11-11	21-12-11
Market Capitalisation	324.65	323.46
Dividend Yield -%	1.37

Investment Rationale

The year 2012 heralded the start of digitization of cable. Phase-I of the digitization process saw significant progress in implementation of Digital Access System across four metros. Phase- 2 of the digitization process too is progressing well albeit with some delays vis a vis planned timelines.

A key outcome of the push in digitization will be the ability to increase production budgets and invest in differentiated genres and multilingual content. Digitization of distribution infrastructure is also expected to improve broadcast economics - with lower carriage fee, more equitable distribution of subscription revenues across the value chain and the ability to increase Average Revenue per User (ARPUs).

TVTN, a focussed news broadcaster with a strong boutique of four news channels has maintained its leadership in the News Genre over the last few years. Aaj Tak has been able to build credibility and a very strong brand, which is so very important in the News business. Aaj Tak share has increased from 17.7% in Jan-Mar ‘12 to 20.3% in Jan-Mar '13. Aaj Tak has won several awards last year - ITA Award for best Hindi News, Visual Communication Awards at CII and Gold Awards 2012 - for Best Hindi News. Besides, Aaj Tak has received "News Television Awards 2013" for Best Business News, Current Affairs Feature, Public Debate Show, Entertainment News Anchor, Best Promo Campaign by a News Channel. TV News Presenter and Best TV News Anchor. (Source - Annual Report FY 12-13).

TV Today has made strategic investment of Rs.45 crores in Mail Today newspaper - this has helped it have a 360 degrees approach by being in Televison, Radio and Print Media business.

The digitization of cable is expected to bring in transparency and increase subscription revenues for Multi System Operators and broadcasters. The under reporting of subscriber base which was rampant in the absence of each television enabled through Set Top Box - will be much lesser, leading to an increase in subscription revenues for broadcasters.

The key concerns however are Lack of Transparency in sharing of Revenues by Local Cable Operators, a sharp increase in carriage fee due to limited bandwidth and increase in Competition from various existing & new players in the News Broadcasting busness.

Two main sources of revenue for TV Today are - Advertisement Revenues & Subscription Revenues. Both the streams of revenue i.e Advertisement & Subscription Revenues have shown growth in FY 13 compared to FY 12. The growth is significantly higher in Q1FY14 compared to Q1FY13. Moreover, the company has been reducing the losses from the Radio business. With increased penetration of digitisation including new platforms like DTH and IPTV, besides the traditional Cable TV, TV Today is expected to benefit from increased subscription revenues.

TV Today has been able to improve its advertising and subscription revenues and reduce carriage fee. Also, very low level of debt makes it far superior to other broadcasters with high level of debt - thereby reducing financial risk in the event of the environment becoming challenging. The low debt also allows the company to borrow in cases it requires funds for growth.

The stock looks attractive at its CMP and on declines.

For full report, Click on the attachment

Disclaimer: Ashish Chugh is an equity analyst and investment consultant based at New Delhi, INDIA. At the time of writing this article, he, his firm and dependent family members have a position in the stocks mentioned above. The author, his firm or any of his dependent family members may make purchases or sale of the securities mentioned in the report while the report is in circulation. The author invites readers to send him email and welcomes comments, feedback & queries at nexgenfin@yahoo.com. This report has been prepared solely for information purposes and the information contained herein may not be deemed to be an investment advice. Such information is impersonal and not tailored to the investment needs of any specific person. The information contained herein is not a complete analysis of every material fact representing any company, industry or security. The views expressed may change. While the information contained herein has been obtained from sources believed to be reliable, no responsibility (or liability) is accepted for the accuracy of its contents. Investors are advised to satisfy themselves before making any investments and should consult with and rely upon their own advisors whether and how to use such information in making any investment decision. Neither the author nor his firm accepts any liability arising out of use of the above information/ article.

TVTodayNetwork_AshishChugh_Multibagger.pdf