The revenue stream is slowly picking up and we can hope for better prospects in the coming days. This means that Q1FY13, results will be a little better than Q4FY12 results. You can visit the website of the company for further details: http://www.kohinoorbroadcasting.com.
However, we can base our investment premise on the following:
(i) The book value of the shares of the company are more than 10 times current market price of the company.
(ii) The face value of the company is more than 10 times the current market price of the company.
(iii) Most of the companies in the media sector have loss making balance sheets and hence Kohinoor Broadcasting Ltd cannot be an exception. We should compare, apples with apples and not apples with potatoes. The broadcasting companies generally trade at high valuation and good point is that Kohinoor Broadcasting Corporation is both a content and broadcasting company---so it should naturally trade at high valuations.
(iv) It is in the process of launching KBC Gold, a general entertainment channel, which could be big revenue spinner in the coming days.
(v) The value of the two licenses of the company apart from its assets in the form of earth station that is capable of up-linking 8 TV Channels in Punjab, play out station and other infrastructure, should also be considered.
(vi) The earth station is capable of up-linking 8 TV Channels in Punjab. The company is first company of north India to have its own earth station and up-linking Tele port.
(vii) Its investment in the subsidiaries, viz. Kohinoor Broadcasting Corporation FZE, in Dubai, as its distribution hub in United Arab Emirates and in the Solar Energy Sector, KBC Power Corporation Limited (incorporated in the year 2010 and the company has a target to commence commercial production in April, 2013).
(viii) The government's digitization plan could help the broadcasters a bit and at the same time if there is FDI in the media sector, the stocks in this sector could fly
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