Market Mantra
Kohinoor Broadcasting Corporation Ltd hits the 2nd consecutive buyer freeze in the opening trade. There are some recent positive developments in Kohinoor Broadcasting Corporation Ltd, and because of which the stock has hit the buyer freeze yesterday and today also it hit the upper circuits.
As you all must be aware that the company has launched its free-to-air channel, KBC News in Q3FY12 and it is in the process of placing it in the DTH Platform, to increase the viewership and get a boost in the revenue generation. The company is also thinking of raising some money and also, tie up with some companies for both its media and solar energy ventures.
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
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
Therefore, I feel that one should invest in the shares of Kohinoor Broadcasting Corporation Ltd and keep holding. At the current price of Re.0.75, it is a steal. I am looking at a target of Rs.10 in the coming days.
Lanco Infratech Ltd touched Rs.12.69, today before cooling down a bit. It is now trading at Rs.12.52, up around 1%.
Unitech Ltd today touched Rs.22 and is now trading flat. It is one of those companies which has the 2nd highest land banks in India. Buy the scrip without fail and hold for sometime, to get some superb returns.
Buy Mini_Nifty at 4855, T--4930, SL--Rs.4830...The whole of Europe is Green and so is Asia. I am confident that we would close in the Green. Please take this opportunity to go for shopping of good counters.
Another scrip which was recommended to the Paid Groups, last week, hit the 4th consecuritive buyer freeze. Today, there are around 1 million trades to be executed. This stock could give multi-bagger returns to the Paid Members. Join the Paid Service or my brokerage house to get some of these benefits.
Unitech Ltd today touched Rs.22 and is now trading flat. It is one of those companies which has the 2nd highest land banks in India. Buy the scrip without fail and hold for sometime, to get some superb returns.
Buy Mini_Nifty at 4855, T--4930, SL--Rs.4830...The whole of Europe is Green and so is Asia. I am confident that we would close in the Green. Please take this opportunity to go for shopping of good counters.
J P Associates Ltd recommended around Rs.60.50, today touched Rs.64.75. The next target for the scrip is Rs.67-68. One should buy the scrips in the infrastructure sector, as the company has no option but to give stress to this sector in the coming days.
Another scrip which was recommended to the Paid Groups, last week, hit the 4th consecuritive buyer freeze. Today, there are around 1 million trades to be executed. This stock could give multi-bagger returns to the Paid Members. Join the Paid Service or my brokerage house to get some of these benefits.
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