Prefer Reliance MediaWorks: Rajesh Jain

Prefer Reliance MediaWorks, says Rajesh Jain, Independent Market Strategist.

Jain told CNBC-TV18, "The time has passed when an investor could have bought in Inox shares to leverage on the likely gains from a competitive war for the open offer. Now the only positive development that can happen is if Reliance continues to chase Fame despite Inox having a higher stake and agrees to do a strategic buyout from Inox. But given the stake that both Inox and Reliance have in the exhibition business it is very unlikely that Inox would sellout to Reliance even if Reliance offers a highly exaggerated price." He further added, "I personally think that the time to buy Inox in anticipation of such a outbidding by a competitor is over. Now in terms of pure business trend Reliance is clearly the leader in the pack has a wider distribution model, more diversified, more balanced, more safety nets and very clearly whether it is film processing, whether it is film production, distribution and exhibition, Reliance MediaWorks is clearly the better pick of the two. So if you were to ask whether one should buy Inox? The answer is NO. A better pick clearly would be Reliance MediaWorks."