Positive on Shemaroo, can outperform broad indices: Dolat

Amit Khurana, Co- Head Equities & Head of Research at Dolat Capital Market told CNBC-TV18, "I think that Shemaroo is a slightly, sort of a niche call to make and our hypothesis there is that the launch of 4G services could lead to a significant demand for data services. If you look at the telecom revolution, it was all built on voice a decade back and we saw a significant increase in voice traffic and volume numbers. We believe that India is now at an inflection point for the same for data as cheaper smartphones are launched. Reliance Jio is going to be the new player in the market, that will increase the capacity for the system very significantly and we already have seen other players launching these services." "We believe that aggregators like Shemaroo, there are a whole lot of others as well, will be significant beneficiaries of this trend where in the data consumption, while it happens at the telecom operator level, the services which will be consumed which is content primarily whether it is entertainment, whether it is any other content will benefit these players. Shemaroo being one of the largest aggregators on content, with content in Bollywood and regional as well is reasonably well placed to capture that opportunity and therefore our positive view on that," he said."We believe over the medium term, it can significantly outperform the broad indices and in general probably generate 25-30 percent compounded annual growth rate (CAGR) earnings potential over the next few years."