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Last Updated : Sep 17, 2012 12:19 PM IST | Source: Moneycontrol.com

Kotak Securities upgrades TV18 Broadcast to buy

The retail broking arm of Kotak Securities has upgraded its rating on TV18 Broadcast to 'buy' from 'accumulate', citing attractive valuations. The brokerage has a fair value target of Rs 26 for the stock.

 
 
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Moneycontrol Bureau


The retail broking arm of Kotak Securities has upgraded its rating on TV18 Broadcast to 'buy' from 'accumulate', citing attractive valuations. The brokerage has a fair value target of Rs 26 for the stock.


TV18 Broadcast and its parent Network 18 Media and Investments, will be raising around Rs 2700 crore each through rights issues.


The Network 18 rights issues opens on September 18, and the TV18 Broadcast rights issue opens on September 25.


"We re-evaluate the investment case for TV18 Broadcast, following the announcement of rights issue price (Rs 20 per share). Although it remains true that valuations paid for ETV acquisition are high, we believe the negatives are in the price," the Kotak note to clients said.


"Moreover, it remains true that the acquisition adds to the clout of the network at a critical juncture (implementation of Digital Address System). We believe TV18 Broadcast is headed towards profitability in the medium-term, on account of growth in subscription revenues, improvements in margin and reduction in interest payments," the note added.


Disclaimer: Moneycontrol.com and TV18 Broadcast are both part of the Network18 Group.



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First Published on Sep 17, 2012 12:10 pm
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