Reliance Broadcast Network Ltd: Solid Fundamentals and Good Chart

Reliance Broadcast Network Limited is a multi-media entertainment conglomerate with play across radio, television, intellectual properties, out of home and television production. It is part of the Reliance Group and specializes in creating and executing integrated media solutions for brands. Business verticals as follows:

• 92.7 BIG FM – India's largest FM Network with 45 stations, reaching over 4.16 crores Indians each week.
• BIG CBS –A joint venture with CBS Studios International, USA's No.1 TV broadcaster which has launched 3 Channels, BIG CBS Prime, BIG CBS Love and BIG CBS Spark.
• BIG MAGIC – Is India's first channel exclusively for Hindustan, the core Hindi heartland of Uttar Pradesh, Madhya Pradesh and Bihar, from the Reliance Broadcast Network stable, featuring locally relevant entertainment around Humour, Bollywood, Movies, and Music. It has also which has also expanded into the US, Canada and Australia under the brand name BIG MAGIC INTERNATIONAL;
• BIG PRODUCTIONS – the television content production division that caters to the creative needs of the diverse Indian television landscape.
• BIG STREET – which acquires and markets long term premium out-of-home inventory. Reliance Broadcast Network also distributes Bloomberg TV India, the country's premier business news channel as part of its television bouquet.

Having built significant and all-inclusive media capabilities, each of these business verticals come together to offer clients a truly integrated media solution.
Through its integrated media sales team - BIG Connect that serves 1000 + clients each month through 52 offices across the country, RBNL represents one window to the big world of the Reliance Group's 200 million + consumers. The sales team maximizes every opportunity available across the Reliance Group's advertising assets to create unmatched value for advertisers and brand owners.
The reach and spread of the Reliance Group is known to all. With business interests that permeate almost every aspect of a consumer's life, the group offers multiple business and consumer touch points across communications, infrastructure, power and entertainment. Reliance Group's media assets across infrastructure, telecommunication, retail, out-of-home, broadcasting, television production and online, form an enviable portfolio that touch the lives of millions of Indians across the country, everyday. This world of consumers offers advertisers multiple touch points to connect with their audience.

Now the deadline set by the government for cable TV digitization in 38 cities, including Visakhapatnam, ended on Sunday, though some pockets in the country are expected to complete the process by the 1st week of April, 2013. Any cable TV service provider who does not switch to digital TV can be penalised and the equipment confiscated, according to the guidelines set by the Union government in its notification.Now, cable TV would be available only through the digital system. This is expected to bring a dramatic changes in the bottomlines of companies like Reliance Broadcast Network Ltd, because this is expected to give a boost to the visual segment too, apart from its FM division. 

If you remember it fell from around Rs.100 (July--September, 2011 period) to current price of Rs.27.40. Yesterday (2nd April, 2013) it probably gave a break out, which will be confirmed if it crosses Rs.31 in the coming days. Buy the scrip if you get a chance tomorrow and hold it for higher targets in the coming days. This is an ADA Group company and now Samajbadi Party (SP), of UP, is supporting the UPA government. Hence, you can understand my hint. The scrip is expected to hit non--stop upper freezes in the coming days. Its equity is only 39.73 Cr. The OPM was 22% in Q3FY13 and NPM turned positive on Q-o-Q basis during the same period. CMP: Rs.27.40.