Porinju Veliyath buys more of ZEE Media stock

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Pee Vee
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Porinju Veliyath buys more of ZEE Media stock

Post by Pee Vee »

Porinju Veliyath's Equity Intelligence India Pvt Ltd bought 8,72,500 shares of Zee Media Corporation Ltd on 02-01-2018. The holding now stands at 5.09 % (24 million shares). Trigger for the co. completion of the acquisition of reliance radio business.

http://www.bseindia.com/xml-data/corpfi ... 141055.pdf

As per ICICI Research report:

Triggers

 Zee Media Corporation (ZMCL) is one of the largest news networkcompanies in India with 11 channels in six languages. The company isembarking on a growth phase led by demerger of the loss making printbusiness and acquisition of radio business (Big FM brand) fromReliance Broadcasting Network Ltd. (RBNL)

 ZMCL’s flagship channel Zee News has seen a sharp improvement inthe last six months and is now positioned as strong No. 2 newschannel behind the leader Aaj Tak on account of a steadyimprovement in its urban ratings. It has also taken ~20% ad rate hikeon flagship channels, albeit Aaj Tak‘s ad rate premium remains.

Furthermore, there has been a sharp improvement in yield in theregional portfolio. Management is confident of ~20-25% ad revenuegrowth in FY18 as ad yield improves. We expect 16.7% ad revenuesCAGR over FY17-20E, with EBITDA margins of 25% by FY20E, drivenby yield improvement.

 ZMCL acquired radio business (brand ‘BIG FM’) from RBNL in FY17 atan outlay of | 1592 crore. The 100% consolidation of the existingstations is likely from FY19E, while new stations consolidation wouldbe from FY21E, when lock-in period ends. RBNL reported topline of ~|300 crore with 35% operating margin in FY17. Being among top threeplayers in the industry, strong positioning (strong No. 2 or 3 in keymarkets it operates), industry leading margins and focus on ad yieldimprovement augurs well for Big FM. We expect Radio revenues togrow at 15% CAGR over FY17-20E, with margins of 37% in FY20E.

Valuation & Outlook

 ZMCL is transforming into a dual play on News segment (led by yieldcatch up on account of improved urban ratings) and high growth radiobusiness (post the completion of acquisition of BIG FM). Demerger ofloss making also augurs well as the residual business will reflectsuperior return ratios, and cash flows, going ahead. We believe thatgiven the robust growth potential, the company’s radio business cancommand EV/EBITDA multiple of 15-16x (20-25% discount to ENIL) onFY19E basis, while broadcasting business could get P/E multiple of 15x(in line with TV Today)
vikas.dhariwal
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Re: Porinju Veliyath buys more of ZEE Media stock

Post by vikas.dhariwal »

Sir why it is not showing in shareholding pattern.that equity intelligence or porinju hold such number of shares.
Pee Vee
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Posts: 453
Joined: Mon Dec 26, 2016 10:45 pm

Re: Porinju Veliyath buys more of ZEE Media stock

Post by Pee Vee »

vikas.dhariwal wrote: Wed Aug 08, 2018 2:41 pm Sir why it is not showing in shareholding pattern.that equity intelligence or porinju hold such number of shares.
This may be because the shares are held in the names of the individual members of the PMS. It is only if the collective holding exceeds 5% that it has to be separately reported.
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