Hold Balaji Telefilms: Kapoor

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Hold Balaji Telefilms: Kapoor

Ashish Kapoor, CEO of Investshoppe is of the view that one should hold on Balaji Telefilms.

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Excerpts from Your Stocks on CNBC-TV18 Watch the full show » ALSO READ See previous views by Ashish Kapoor See what other Experts & Brokerages are saying about Balaji Telefilm See messages about Balaji Telefilm Balaji Telefilm BSE | NSE 28/05/12 Are Mutual Funds betting on Balaji Telefilm?

Ashish Kapoor, CEO of Investshoppe is of the view that one should hold on Balaji Telefilms .

Kapoor told CNBC-TV18, "Fundamentals of Balaji Telefilms are good and the financials have been improving. At present value it is quite attractive in terms of valuation and going forward lot of new entertainment channels are going to be launched, so there will be lot of demand for the content that Balaji produces. Also with the CAS rollout, lot of channels would agree to pay higher premium for good content, which Balaji produces. To their credit very consistently 40 or atleast 40 of the top 100 slots in the TRP rating are of programmes produced by this company. So I think given the fact that media is likely to explode in a very big way with the CAS rollout and many entertainment channels are being launched."

He further added, "The company has a good future, I agree it has been underperforming for quite sometime but if the investor has been holding for sometime I think he/she should be more patient with it. Like I said its very attractive at these valuations when compare to other media stocks. I think its one of the cheaper bets in this sector and this content manufacturing is likely to get a better premium, even this year their revenues from schedule programming which is where they get a fixed contract from every channel has gone up by 15%. So I think the future is bright, one should hold on and in fact can use dips to buy more also."

"Whenever the movement comes in this you can, if you take a six months to one year scenario, this stock has the potential to deliver 40-50% appreciation from these levels because if you look at the valuation and compare it with the other media stocks and other content producers, it is quite cheap and it has the potential to generate returns from here and if one buys more at lower levels, one should be able to come out with a profit in a one year kind of scenario."