Tulsian bets on media this month; picks top four

In an interview to CNBC-TV18, SP Tulsian of sptulsian.com said that for the next one month he is keeping a positive view on media and cement sector. He also recommended four media stocks, namly; Balaji Tele, Zee Entertainment, Hathway and Dish TV.

Below is the edited transcript of his interview with CNBC-TV18 Q: What do you think could be the dramatic performer for the coming week itself? Do you think media stocks will continue? Will they continue with their trend of best performance? A: That is right. For next one month I am keeping positive view on two sectors - one media and second cement. Cement may take a little longer time. It may not really recoup in the current series which is expiring on Thursday. Things are likely to remain quite dull and boring. We have always seen that last three-four days have remained quite muted. This time I am expecting it to be bit negative. Hence it will be sensible to focus more on the media stocks which are not having presence in the index or in the F&O segments. So focus more on the media stocks having their presence in the midcap segments or in the cash segment. Q: Any specific stocks that you are recommending at this point? A: There are about 10-12 ideas available in this space. However, I have chosen four stocks to start with. One is Zee Entertainment which has its presence in the F&O. If somebody can keep a view of about next 2-3 months, they can look for a return of 20 percent plus at the current time. Second I have chosen Balaji Tele. Looking to the revenue explosion expected for all the broadcasters because of this digitization move, second phase of that will be on or implemented in the 38 cities by March 2013. So obviously that will give them encouragement to make the higher allocation for the contents or maybe for the software making. Balaji Tele’s 25 percent of the market cap is presented by the cash and cash equivalents which the company is holding. So, I am expecting Balaji Tele to ramp up their operations profitably from FY14 onwards. Next two stocks are from the MSO, LCO space. First is Hathway and second is the Dish TV. Again on the same theme of digitization that from 31st March, 2013 we will be having 38 cities with 1.3 crore TV sets is also seen quite positive for both these companies. One can add many other companies also in that space, maybe DEN and Sun TV, but I have chosen Hathway and Dish TV.