TV Vision Ltd: Buy

CMP: Rs.17.85

Market Cap: Rs.62.73 crore

Book Value: Rs.34.54

Industry P/E: 46.79

Introduction: The company started its broadcasting business in 2010 by launching Music and Youth

Channe "Mastiii". The bouquest of channels as grwon from one ion 2010 to five in 2015. The company expanded its footprint into Digital Media by launchng digital channel "Happii-Fi".After the scheme of amalgamation and arrangement, the broadcasting business of the of SAB Group is now being run by TV Vision Ltd. 

Shareholding Pattern: The promoters hold 37.63%, while the general public hold 62.37%. Among the general group, Central Bank of India hold 8.85% while insurance companies hold 0.58% of the shares of the company. Others who has a sizable holding in the company are:

#Assent Trading Pvt Ltd -- 6.26%

#Aranav Trading ad Investments Pvt Ltd -- 6.63%

#Kalash Trading and Investments Pvt ltd --- 5.72%

#Keynote Enterprises Pvt Ltd -- 5.44%

The corporates and large investors hold 52.69% leaving around 9.68% in the hands of the small investors. This gives low float and correspondingly increase the valuation of the share price. 

Financial: The company's financials got hit due to demonetization in Q2FY18 and Q3FY18.

However, speaking sequentially the financials of the company are showing some improvements. The total income of the company for Q3FY18 came as Rs.27.18 crore as against Rs.26.04 crore in Q2FY18 and Rs.44.60 crore in Q3FY17. 

The net loss of the company came down to Rs.3.6 crore in Q3FY18 as against Rs.4.68 crore in Q2FY18 and a net profit of Rs.2 crore in Q3FY18. Accordingly the EPS for Q3FY18 came to (-)Rs.1.03 from (-)Rs.1.34, showing marked improvement, sequentially. It is pertinent to mention here that the figures cannot be compared on Q-o-Q basis due to demonetization effect and hence sequential comparison seems to the best measure to asses its financial prowess.

Triggers: 

#The company is into broadcasting and content production. It is operating 5 (Five) TV channels namely, Mastiii, Dabangg, Dhamaal, Maiboli and Dillagiii. Mastiii, the Hindi Music TV Channel continues to  main the numero uno position in the target market and is holding position of the "Unchallenged No.1 Music & Channel for over one year".

#Dabangg, the Regional Entertainment Channel has continued its key position among its competitors. The Channel has added more regional flavour in its programming while focusing on increase in Bhojpuri content for the Channel. 

#Channel "Dhammal" positioned as youth and music channel for the state of Gujarat is showing steady performance while the regional Marathi Channel "Maiboli" has established itself as a strong player in the Marathi segment with its unique programming mix. It has strengthened its content offering by telecasting World TV Premier of famous Marathi movies. 

#"Dillagiii", the Channel which was launched with intention of catering to LCI regions, caters to large Indian population base across all age groups and is expected to improve its performance as the twins effects of demonetization and GST wanes off. And despite a challenging market, the improvement in financials on sequential basis is an indication of a turnaround and its ability to generate free Cash Flow. 

#The company has been closely monitoring the developments and are taking strategic steps to respond positively to the changing environments. It is also working on a blue print to make a bouquet of nine plus channels in variuos generes which includes existing bouquet of five channels and also having big plans to enter into the Hindi GEC space along with new regional channels and niche category channels. The company is well established in regional space with currently three region specific channels catering to different regions.

Conclusion: The company's broadcasting business is growing at a rapid pace. It currently operates 5 TV channels as mentioned above and with the success of the launched channels, TV Vision management intends to expand further in the broadcasting space and new age media. The requirement of funds is proposed to be met from both equity and debt from issuance of appropriate securities as defined in the resolutions and from both domestic and international markets. The funding would be an appropriate mix of equity and debt to meet with the objective of optimization of the cost as well as conservation of financial management. Let us elaborate a bit on its TV Channels:

a) MASTIII

“Mastiii” - India’s No.1 Music & Youth Channel from the network bouquet of SABGROUP, has

created a mark for itself and emerged as an un-paralleled and unchallenged #1 channel of the genre. The channel having a universal appeal caters to a variety of music lovers of various age groups becoming the most loved Music channel in India. Being the market leader, Mastiii has introduced and successfully implemented many first of its kind innovative properties, such as Mastiii Doubles which has gone to become the number 1 music show in its respective time band, Mastiii Star wars, a one of its kind battle in which Bollywood superstars fight it out with their hit songs hereby engaging the viewers not only through broadcast but also through social media. Everyday part of the channel has been very systematically planned to cater to every mood of the viewer during the day giving the audience a mix of peppy, romantic, retro and Bollywood blockbuster old and new Hindi songs.

b) DABANGG

“Dabangg” one of SABGROUP’s premier regional entertainment channels was launched to cater to the

audience of U.P., Bihar & Jharkhand. The Channel is widely distributed in the targeted territory. Bhakti Sagar a devotional show which has become the favorite amongst the viewers followed by back to back Bhojpuri movies & Hindi movies. With the vast movies library and exclusive World Television Premiers the channel is set to take the audiences entertainment quotient several notches higher. But the entertainment does not just stop there, having a change in programming during the festive periods the channel tries to give its audience a feel of the festivities right on their television screens.

c) MAIBOLI

Having spread its wings in the North SAB GROUP ventured out to capture Maharashtra with its

regional Marathi channel “Maiboli”, launched to cater and entertain the Maharashtrian audience. In the recent past the channel has gone ahead and given established market players a stiff competition. With shows such as Filmy Gappa which gives latest updates on what’s happening in the Marathi movie industry, Bolte Tare where the channel interacts with various Marathi celebs & one devotional programme named Amrut Manthan in the morning time band and multiple Marathi movies & Songs, the channel has become a complete family entertainer for the region.

d) DHAMAAL

“Dhamaal” is the youth focused regional channel for the territory of Gujarat. The programming of the channel includes music and "Gujju Bhai" gags along with shows such as “Dhamaal Ek Minut Ni” and “Dhamaal Youngsterni”. The channel is very well distributed in the targeted territory.

e) DILLAGIII

“Dillagiii” a dedicated TV channel for small towns & villages of India including towns with a population of less than one lakh (known as LC1 markets) across regions. Dillagiii is a family entertainment channel, believes in touching people's hearts through movies & gags by Raju. The Channel stands for the most invaluable things in life – love, family, fun & memories.

Thus, from the above discussion we find that the shareholders of the company has a great future ahead, if they buy the scrip of the company near the CMP of Rs.17.85 and keep holding, for short term targets of Rs.27-29 and medium term target of Rs.41-42.