Research and investment houses have recommended the initial public offer (IPO) of equity shares by Raj Television Network. The company entered the capital markets on February 14, with an IPO of equity shares at a face value of Rs 10 on a price band of Rs 221-257 per share.
Raj Television is one of the largest regional satellite television broadcasters and the second largest regional channel pay network in Tamil Nadu.
"In view of the flourishing entertainment sector, and the company’s expansion plans, we believe this IPO should be looked at from a medium-term perspective," say analysts from Keynote Capitals Research.
They feel that an extensive line up of attractive programming and content mix which caters to the entertainment needs of the entire family and a movie database of over 1384 Tamil films comprising old classics to recent blockbusters have the potential to boost up the margins of the company future.
According to analysts at the Angel Broking, at the upper end of the price band of Rs 257, Raj Television stock would trade at a P/E of 20x its FY2008 expected EPS. Its closest peer comparison would be Sun TV, which is the most dominant regional TV broadcaster in the South Indian states of Tamil Nadu and Kerala and trades at 32x its FY2008 expected EPS. Considering the growth potential for Raj Television Network and its relative valuation, "We recommend a subscribe to the issue," they said. Indiabulls analysts said that the revenue has grown to Rs 33.79 crore at a CAGR of 6.9 per cent over FY 02 to FY 06.
Courtesy : Asianage.com
Raj Television is one of the largest regional satellite television broadcasters and the second largest regional channel pay network in Tamil Nadu.
"In view of the flourishing entertainment sector, and the company’s expansion plans, we believe this IPO should be looked at from a medium-term perspective," say analysts from Keynote Capitals Research.
They feel that an extensive line up of attractive programming and content mix which caters to the entertainment needs of the entire family and a movie database of over 1384 Tamil films comprising old classics to recent blockbusters have the potential to boost up the margins of the company future.
According to analysts at the Angel Broking, at the upper end of the price band of Rs 257, Raj Television stock would trade at a P/E of 20x its FY2008 expected EPS. Its closest peer comparison would be Sun TV, which is the most dominant regional TV broadcaster in the South Indian states of Tamil Nadu and Kerala and trades at 32x its FY2008 expected EPS. Considering the growth potential for Raj Television Network and its relative valuation, "We recommend a subscribe to the issue," they said. Indiabulls analysts said that the revenue has grown to Rs 33.79 crore at a CAGR of 6.9 per cent over FY 02 to FY 06.
Courtesy : Asianage.com