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Media stocks shine in a week of Q2 results

MUMBAI: Festivities begin on the bourses in a style. Both the BSE and the NSE are hitting the roof. While at the domestic front positive growth numbers from leading corporates and IIP data fueled positive change in fundamental outlook, increased participation from overseas investors continued to boost the sentiment.

On Friday, the Sensex rose as high as 21,293.88 points, a gain of 0.6 per cent for the day, surpassing the previous record of 21,206.77 points on 10 January 2008. It ended Friday with a gain of 0.15 per cent. Sensex’s new high was propelled by foreign inflows of around $3.5 billion.

Meanwhile, investor’s interest in the media and entertainment stocks is showing no signs of abating. In fact, good financial performances from the leading companies have bolstered investor’s confidence in them.

medsPVR, Balaji Telefilms, Jagran Prakashan, TV18 Broadcast and Raj Television Network are some of the companies that have declared their second quarter financial performance. On aggregate basis, they have clocked double-digit growth in revenues, while astounding growth in net profit captivated one and all. In most cases, they bettered analyst’s expectations and the obvious impact was higher gain on the bourses for these counters.

PVR emerged as a star performer during the week. Its shares surged 16% before closing the week at Rs 597.10 on the BSE. Better collection from theatrical business as well as higher realisation aided the counter to record its new 52-week high of Rs 605.8 on Friday.

PVR’s consolidated revenues surged 90% to Rs 367.1 crore ( Rs 3.67 billion), despite fewer big releases. It witnessed 42% rise in sponsorship revenues while footfalls increased by 8% to 16.6 million in the quarter to September 2013. The multiplex chain operator also imposed a 4% increase in average ticket prices.

Dish TV shares also gained due to the fiscal second-quarter performance. EBITDA jumped 21.5% from the trailing quarter while net loss narrowed to Rs 16 crore ( Rs 160 million) from Rs 30.4 crore ( Rs 304 million). Dish TV counter closed the week at Rs 54.05, up 6.3%.

Sun TV, Zee Entertainment Enterprises (ZEEL), also had their fair share of gains, given that the broader market sentiment remained positive. With ZEEL at Rs 270.45, remained within the striking distance of 52-week high, the focus will now shift to Sun TV’s counter which will be witnessing some hectic activity ahead of its financial performance release next week.

Jagran Prakashan managed to pull itself out of the falling trend in its share price as the company’s board announced share buyback plan. The company will buy back 5 million shares through the ‘tender offer’ process from the general public at a price of Rs 95 per share for an aggregate amount of Rs 47.50 crore ( Rs 475 million).

Sniffing the opportunity to make quick gains, market punters turned active on the counter. Shares of Jagran Prakashan settled the week 3.7% higher at Rs 87.55 on the BSE. Interestingly, on Friday 11 October, the counter had slipped to its 52-week low of Rs 77.90.

Balaji Telefilms returned to the black, helped by its movie production unit which generated higher revenues. Two of its releases in the last quarter performed better on the box office. Balaji Telefilms’ counter on BSE ended the week 2.1% higher at Rs 33.75 per share.

Raj Television Network reported 50% rise in its net profit to Rs 3.46 crore ( Rs 34.6 million) for the quarter to September 2013, while its standalone revenues grew 12.30% to Rs 18.35 crore ( Rs 183.5 million). Buoyed by improved performance, the counter spurted to 52-week high of Rs 476.00 per share on Wednesday. It ended the week with a modest gain of 1.8% at Rs 473.55.

TV18 Broadcast also released its quarterly performance during the week. The company reported a three-fold surge in its operating profit (EBITDA). TV18 ended the weekend session 3.26% higher at Rs 23.70. NDTV, ZEE Media, following TV18’s performance on the bourses, also recorded gains.

On BSE, NDTV settled the week at Rs 84.05 per share, up 1.75% while ZEE Media added 10.5% before concluding the session at Rs 13.73.