Saturday, April 07, 2018

TV Vision Ltd: Buy
CMP: Rs.16.800
Book Value: Rs.34.54
Face Value: Rs.10
Market Cap: Rs.58.71 Cr
Industry P/E: Rs.47.03
Introduction: After Sri Adhikari Brothers  (SAB) Group demerged all its various business verticals,
in 2016, TV vision Ltd became a part of the Rs.2000 crore group. The group now has dedicated entities for movie production (parent SAB Group), television production (TV Vision) and events and publishing (SAB Events and Governance Now Media). 
At present, TV vision Ltd comprises a bouquet of five channel broadcasting bouquet, namely Mastiii, Dabangg, Maiboli, Dhamaal Gujarat & Dillagi. It plans to add few more regional channels along with a mainstream Hindi GEC, in the near future.
There were earlier media reports that SAB Group has earmarked Rs.400-500 crore on strengthening its broadcast and film business. Additionally, the company said it is building two state-of-the-art studios -- one near Sahar International Airport and the other in North Mumbai.

Shareholding Pattern: The promoters hold 37.63%, while the general public holds 62.37%. Among the general category, the Central Bank of India holds 8.85% of the shares of the company. 

Triggers:
#It has already carried out a test launch of its Northeastern channel Se7en (pronounced ‘seven’) which will feature international and locally produced music content. The channel is expected to be launched soon.
The company is also planning to launch its comedy focused brand Happii. The brand will operate in four verticals – on television as a comedy focused Hindi general entertainment channel Happii, on-ground as Happii-G, on digital as Happii-Fi and as an audio only-mobile entertainment vertical in the form of Happii-Me. It has launched its digital initiative Happii-Fi which is not an OTT platform. 

#There were earlier media reports that the company is in talks to acquire a Multi Channel Network (MCN) and are in discussions with three-four companies. It might announce the deal by the end of 2018.  The company wants to go big in the digital space, as it is the future for all businesses.

#It will continue to create 100% original digital content, including web series and short formats. The company is also looking at extending its reach through strategic tie-ups with OEMs and OTT players and even telecom companies. The company hopes to be India’s biggest multi-platform comedy brand.

#Though  SABTNL holds all the content and IPs of the group, including the digital business, TV Vision will indirectly be benefited from it....The SABTNL has huge content library which it plans to syndicate library, formats and sell the remake rights to other countries as well. 

#Higher government ad spend in the run-up to Lok Sabha election, recovery in major verticals like real estate and FMCG will aid revenues in the broadcasting space. Therefore, whatever be the verdict of India’s general election next year, many analysts are betting TV broadcast companies. The biggest reason: the government’s expected advertising blitzkrieg.

Conclusion: Though the untimely death of Gautam Adhikari, has rocked the company's boat, but it is slowly coming out of that shock. 
The 52 Week High (adjusted) for the scrip is Rs.283.85, while its 52 Week Low (adjusted) is Rs.13.95.  The stock closed above its 21D EMA and is likely to face the 1st resistance at around Rs.18.70-19.20 zone. In the short term we can look for targets of Rs.27-29, while on the medium to long term the targets could be as high as Rs.82/124/157/191. Hence, accumulate the scrip on all declines, for some superb returns going forward. 
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