Investment Thesis in Indian Media Sector

January 3, 2013

Team The Pirates of Vastrapur arti!a Mitta" # P $sho! Varadhan # Shu%hra &hosh

Structure of the Presentation

Investment ,"imate, ,ha""en(es and o%servations

+rivers of past and present Investment +ea"s

Investment Thesis support - .ustification P"ayer 'enchmar!in( )pportunity Matri*

Identify key sector trends & growth drivers

Identify key levers for investments

Benchmarking players and sector factor scores

Opportunities, Future forecasts & Recommendations

The present investment ,"imate is /avoura%"e, supported %y stron( (ro0th despite recession1
#
2istorica" &ro0th Trends
Media Industry Historical Y-O-Y Growth 12.77%
G CA 8 R 9.1 %

i8 Investment climate is positive and it is supported $y a

30 20

strong C-.R of 9+#!( ):o:) despite recession, hence this growth rate is impressive 8 %&, print and films have continuously $een the ii dominant forces among all types of media channel
iii 8 In print media regional players are dominant forces

11.66%

11.07% 1.21% 2009 2010 2011 2012

10 0

"
,urrent Scope

1 00 "0

i Current market size stands at I R !"# $illion, with %&,

print and films contri$uting !'( of the volume )ear "*#" saw a #"+,,( C-.R over "*##, which is ii $ound to see a push in the future /igital advertisements 0 1ocial 2edia, /irect to 3ome iii 4/%35 are growing fast, are still much $ehind %& & print

1".80 %

32.10%
tio An im a g Ga m in Dig ital

22.#0%

! in g Ad ve ti

X n & VF

;
/uture /orecasts

i %he market would continue en6oying investor support

owing to the change in the preference of audience 0 7esternization & favoura$le political climate
ii /igital growth is likely to outclass all other media

e!e"#s#on

Pr#nt

F#!$

channels and is likely to overtake Out of home and Radio advertising $y "*#,
iii %& & print would continue as most dominant ad media

Current (2012) e!e"#s#on Pr#nt F#!$

Forecasted (2017)

Source: FICCI KPMG Report, 2013

'ut, ,reativity and audience en(a(ement is an issue, the industry is far %ehind 0estern media in severa" aspects and chan(in( audience tastes is a cha""en(e1
i

1 Ta"ent ,onstraint
ii

4ac! of 5ua"ity ta"ent a %i( issue particu"ar"y in animation, (amin( and advertisin( ,han(in( audience taste demands creativity

i 2i(h (ro0th sectors are e*cessive"y c"uttered vi61 TV, print and +i(ita" ii

i 2

M(mt1 ,ompetitive riva"ry

/i"ms, +i(ita" and 3adio si(nificant"y affected %y ta* c"auses

'ut, for fe0 sectors the pie itse"f is increasin( 7(1 &amin( and +T2

Ta* and 3 3e(u"atory concerns

ii $ccess to /+I "imited, 0ith as "itt"e as 289 sta!e in 3adio : TV

Idea" investment areas 0ou"d %e ones that offer hi(h (ro0th, are re"ative"y non;cyc"ica" and have re"ative"y sta%"e, competitive ta"ent poo"

<ith the economic do0nturn, %usiness e*ecutives are a"so (ettin( more conscious a%out their advertisin( spendin(,

7*ecutives 0ho a(ree or stron("y a(ree 0ith ; =I>m an*ious a%out the future?

+iscretionary Spendin( p"ans over ne*t 12 months

2um$ai

/elhi

<olkata

Bangalore

2um$ai

/elhi

<olkata

Bangalore

Source: %CG Consu$er Sent#$eter %aro$eter, Spr#n& 2011

"eadin( to .udicious"y chosen investment dea"s in Media : 7ntertainment1

Print Media Investment Trends
Investment in Lakhs "32 %#3& #89 %33& #"6
#" 0 "0 0

+i(ita" Media Investment Trends

1136 %12# &

/i"m Industry Investment Trends

"32 %0&
1" 00

7"6

898 %1#2 &

1012 %11# &

1#99 %71"&

1667 %168&

200 0 1"0 0 100 0

Source: Ind#astat'co$

"" 0 "0 0 #0 0

1360 %$307&

10 00 0

78#

"00 0

2009$10

2010$ 11

2011$ 12

2012$ 13

2009$10

2010$ 11

2011$ 12

2012$ 13

2009$10

2010$ 11

2011$ 12

2012$ 13

$"00

,ore +rivers
i Rising =iteracy Rates

,ore +rivers
i /igitization 4/%35 is a $ig fund puller

,ore +rivers

i Increasing disposa$le income

3igh penetration & loyalty of the %. ii Regional and vernacular markets iii continue to defy gravity

Increase in %& channels, niche seg ii >olitical environment is highly iii supportive of more investments

&iewerships continuously rising ii iii o+ of Block$usters and 1uperhits rising, leading to multi:crore profits

,autious investment is on the rise, prime focus is on di(ita" and fi"m industry o0in( to their past (ro0th fo""o0ed %y print <ith phase 3 a""ocations, 3adio %usiness 0ou"d %e "i!e"y to attract more investments

+i(iti6ation is ta!in( off at a very fast pace "eadin( rise to ne0er media avenues
Prime Inferences
i 3uge .overnment support owing to tracking ease

Past and /orecasted +i(iti6ation Trends

21O economics likely to see a huge improvement ii &ery attractive addressa$le market $ase 4!! iii million5

88

,ore Insi(hts
i >olitical environment strongly in favour of growth

Source: FICCI KPMG Report, 2013

70 60 "0 #0 30 20 10

G CA R % 7 .9 3 8 "0

"*#? .overnment highly likely to support the move ii -venues for I>%& are likely to $e opened up soon iii

CAG R 7 108.1 % 1"

6

26

Ma.or 'oosts from +i(iti6ation

i @nhanced a$ility to monetize content .reater transparency ii

2010$11

2011$ 12

2012$ 13

2013$ 1#

201#$ 1"

@Auita$le revenue share across the value chain iii =ower $urden of carriage fees iv Increased a$ility to invest in differentiated and v sophisticated content

ey P"ayers to 0atch out for Tata S!y, @ee +ish TV, $irte" +i(ita" TV and 3e"iance 'i( TV

0hi"e traditiona" media is sti"" (oin( stron( 0ith stron( %ase in re(iona" mar!ets

$dvertisin( 3evenues Ain IB3 %i""ionC

1
>RI %
16 0 1# 0 12 0 10 0 80 60 #0 20 0

Ma.or Trends : /orecasts

Stron( (ro0th in TV, radio : print >rint 2edia 0 India an outlier >hase ; licenses 0 a strong $oost 1trong loyalty towards newspapers Macro;economic indicators Rising =iteracy Continued ur$anization .rowing consumption Increasing disposa$le income 3e(iona" +ominance >rint & %& continues to go regional owing to saturation in metros @Cample 0 Bennett Coleman & Co+Ds @i 1homoy, Eee Cinema Bangla, 1tar Falsha, 1andesh %&, .u6arat 1amachar %& ews

%&

!+B'(

##+*,(

R-/IO #*+!9( "**! "*#" "**! "*#" "**! "*#"

OO3 ;+##(

/I.I%-= ;,+9*(

"**! "*#"

"**! "*#"

i >olitical environment strongly in favour of growth

"*#? .overnment highly likely to support the move ii -venues for I>%& are likely to $e opened up soon iii

Source: FICCI KPMG Report, 2013

4eadin( to a sur(e of dea"s in the Media and 7ntertainment Sector in 20121

Investment Trends in M:71
'ased on Vo"ume
%&
2 00 0 1 "0 0 1 00 0 " 00 0

Ma.or Investment +ea"s in 3ecent Past2

$c5uisition of Sta!es
i 1ony 2edia
!5#! *35, ;"( stake in ",+B( stake in G ;9B m /eal

'ased on Investor Type

M'(
200 0

2ulti 1creen 2edia =iving 2edia @enadu %&

!5#!

ii iii

-ditya Birla .> etwork #!

1"0 0

!$!7 !!"5 ##

!$!7 *#+, )3 *+7,

3o"e of Private 75uity

#B+!"( stake

100 0 "00

i ii

= Capital -sia

>&R Cinema >rime Focus =imited

373 +$!!

35
0

#B+!"( stake 1tandard Chartered >@

+$!+

+$!$

+$!!

+$!+

Trends in Ta*ation +irect Ta*ation 3eadline corporate taC remains the same Indirect Ta*ation 1ervice taC eCemption w+r+t+ copyright in cinematographic films

i Industry poised to grow 4$oth organic & inorganic5

/eals are eCpected to $e driven $y eCpansion & ii consolidation plans

iii >layers in television, $roadcasting and distri$ution

may witness significant transaction activities to fund their growth am$ition

iv =arger media houses to ride on consolidation

1Source: P(C, Sector Forecast, Med#a ) *nterta#n$ent, 2013, Cr#s#! Researc+, Med#a ) *nterta#n$ent, 2013 2, co$pre+ens#"e !#st o- dea!s #s pro"#ded #n ,ppend#. 1

Thou(h cha""en(ed 0ith a 0idened (ap in s!i""s, the present po"itica" scenario thro0s open a p"ethora of opportunities to improve the investment c"imate1
,urrent /+I Investment caps in Media Sector Positive /orei(n Investment Sentiment
i Fudiciously chosen investments are on the rise >rivate eAuity players have a perfect ii time to evaluate cash strapped media sectors and provide them the much needed funds for unlocking their value %he political scenario is favoura$le, iii driven $y favoura$le policy measures
"'(

Source: FICCI KPMG Report, 2013

1" 0% 10 0% "0 % 0%

#**( "'( ,'( "'( ?9( ";( "'(

Adve ti!in ' oad(a!tin g g

)C*!

F+ Radio

,e-!.a.e ! & /e iodi(al!

Ta* 'enefits for Industry P"ayers

i 2ultipleC cinema theatres given special taC holiday for up to B years %amil adu and 2aharashtra are ii strongly in favour of multipleC growths $oosting the film industry iii %ier:" cities such as >une, ashik+, Coim$atore etc+ pose maCimum growth opportunities owing to the clutter in metros

,urrent Measures of &overnment Support

i Co:production treaties

Rationalization of entertainment taC ii .overnmentDs formal support to encourage formal iii skill development and training
iv >hase ; licences to facilitate Radio operations

?. rollouts to facilitate OO3 media consumption v

'enchmar!in( "eadin( p"ayers /M 3adio

P"ayer
1 2 3

Important Trends Aif anyC /ou$le digit growth for last ; years, advertising rates same, volume high &olume advertising has $een the key 2o$ile radio, a huge hit, huge share of local advertising approC+ ,B(

)ur 3atin(1

Radio 2irchi Radio City Big F2

Industry Insi(ht 8 o growth in private F2 since "**' auctions, delay in >hase III $idding, hampering the profita$ility $adly 8 Hnavaila$ility of freAuencies in 2etro cities 0 a $ig issue, no measures even in >hase III auctions 8 Overall Industry RatingI Industry Insi(ht 8 /igitisation as part of /-1 though increases the infrastructure cost, will reduce the carriage cost 8 Investors $elieve that Content generation is under invested and digitisation will $oost the same+ 8 Overall Industry RatingI

Te"evision
P"ayer
1 2 3

Important Trends Aif anyC =anding Rights in China, "nd -ra$ic Channel 0 -lwan Consolidation of content & $roadcasting platform with a huge market share locally 1tagnant .rowth and poor Auality of content has undervalued this company

)ur 3atin(1

E@@ =td 1H %& 1%-R %&

Print
P"ayer
1 2 3

Important Trends Aif anyC &ersatile Content for all set of readers and a reader $ase of ,+' 2illion 7ith 3igh penetration provides opportunity to reach highest reader $ase Regional print media targeting highest spending classes, hence attractive ad rates

)ur 3atin(1

Industry Insi(ht 8 Overall readership coming down with a industry growth of only ,+;(+ 8 Industry relying mostly on -d $ased revenue rather than circulation 8 Inherent advantages resulting in increased attention span 8 Overall Industry RatingI

%OI /ainik Fargan 2alayala 2anorama

1Rat#n&s are a -unct#on o- $ar/et s#0e, +#stor#ca! &ro(t+ rate and pro1ected &ro(t+ rate

'enchmar!in( "eadin( p"ayers &ames and $nimation

P"ayer
1 2 3

Important Trends Aif anyC Financing Independent -pp and .ame developing teams to nurture creativity Create differentiating content and eCpect revenues from fair price ecosystem =eader in Console $ased gaming with ma6or focus on %ier # & " cities

)ur 3atin(1

8 8 8 8

2ilestone Interactive 3ungama /igital 2edia 1ony Comp @ntertainment

Industry Insi(ht 2ore concentration in 2etros and tier # cities+ .radual movement towards mo$ile $ased gaming due to the advent of smart phones 0 nearly B* million =ow =ife cycles & repetitive nature of .ames and -pps Overall Industry RatingI Industry Insi(ht

/i"ms
P"ayer
1 2 3

Important Trends Aif anyC 1everal film line ups and professional management leading to a strong top line %ie:up with /isney 1tudios & cross distri$ution of IntDl & Bollywood movies %rend of =ow Budget, 3igh 1tory movies with huge marketing spend

)ur 3atin(1

Reliance @ntertainment H%& 2otion >ictures @ros International

8 /igital /istri$ution 0 /igitization of ,,( of 1creens & !* ( of films are distri$uted digitally 8 Regional film Industries are struggling due to video piracy, whereas Bollywood thrives due to economies of scale 8 Overall Industry RatingI

)ut of 2ome Media A))2C

Industry Insi(ht 8 &ery few Organised >layers due to Important Trends Aif anyC )ur 3atin(1 P"ayer entry $arriers+ Innovation in understanding the mind set 8 Other @volving media provides >ercept 1 of customers is the key point platform for integrating OO3 with %imes ew Infra >ro6ects are opening avenues them+ /igital OO3 provides 2 Innovative for %ransit OO3 opportunity for /ata -nalytics to 6ustify /epends on %ourism & Retail industry for //B 2udra ROI to clients mainly in transit 3 sustaining OO3 2aC segment 8 Overall Industry RatingI 1Rat#n&s are a -unct#on o- $ar/et s#0e, +#stor#ca! &ro(t+ rate and pro1ected &ro(t+ rate

Te"evision, /i"ms and $nimations and Print form the top 3 investment %rac!ets %ased on a %enchmar!in( ana"ysis of mar!et forces and strate(ic fit
2i(h

Television Films & Animations

Strate(ic /it Score

Highest growth, acquisitions would reduce fragmentation Radio

Highest Market Size Favourable D H !olicies would be a big !ush Print

Percentage of factors in favour of entry

Phase $$$ auction likely to !ush u! the sector growth OOH

"#tremely fragmented, strong regional com!etition

Percentage Share against entry

Still needs time to mature, minuscule growth rate

4o0 4o0 Mar!et /actor Score 2i(h

Market Factor Score = f (Market Size (50%), Growth Rate (50%) Strategic Fit Score = f (Degree of Operating Le erage (!0%), Degree of financia" Le erage (!0%), Go ern#ent po"ic$ fa o%ra&i"it$ ('0%), Market Frag#entation ('0%)

Summary of Investment Thesis 8 Investment environment is favoura%"e, ho0ever cautious investment 0i"" %e !ey 8 Stron( (ro0th in the Media Sector despite recession in the past, trend is "i!e"y to %e continued in the future 8 Industry is "i!e"y to see a 0ave of conso"idation, particu"ar"y in TV and print media 0here "ar(e p"ayers 0i"" mar! re(iona" entry throu(h ac5uisitions 8 Po"itica" environment is hi(h"y supportive of investments in M : 7 sector, ta* re(u"ation "a0s have started easin( up, thou(h s"o0"y 8 +i(iti6ation is on the rise ridin( on stron( (overnment po"icies 8 This imp"ies a sur(e in Private 75uity capita" is e*pected, 0ith sma"" re(iona" p"ayers stron("y in the need of funds and corporate mana(ement 8 This opens up ne0er avenues for fund a""ocation, 0hich are %ound to %e a success in the near future 0ith a diversified portfo"io 8 $"" these factors indicate a stron( investor environment to0ards investin( in the sector 8 Top 3 sectors to 0atch out for /i"m, TV and Print

$ppendi*

Team The Pirates of Vastrapur arti!a Mitta" # P $sho! Varadhan # Shu%hra &hosh

$ppendi* 1
ey transactions in 2012 ; Source Mer(ermar!et, '"oom%er(, Venture Inte""i(ence

$ppendi* 2 ; G steps of Investment Thesis

1 Mana(ement
3is! $ppetite Mana(ement Trac! 3ecord 4eadership $%i"ities Sta!eho"ders> confidence

2 Va"uation
7arnin( 7stimate Mar!et $ssessment +e(ree of +ifference /uture /orecast Tar(et Price : /"e*i%i"ity "imit

3is!s

F ,ata"ysts
Industry trends forecast 4i!e"ihood of favoura%i"ity 2o0 much time to D(et paid>

3eturn

)r(ani6ationa" 3is!s Technica" 3is!s /inancia" 3is!s Mar!et 3is!s 3esource 3is!s Severity Impact

3eturn on Shareho"der>s e5uity Stoc! Eie"d

Investment ,onsideration Mana(ement

3is! $ppetite

Invo"vement

7n(a(ement

#
Propensity to (o for ris!y pro.ect

"
Past Trac! 3ecord

;
4eadership a%i"ities

?
Sta!eho"der ,onfidence

i 1un %& 0 Conservative 8 ii 8 Eee %& 0 Conservative

i8 1un %& 0 &ery .ood ii 8 Eee %& 0 &ery .ood

i 1un %& 0 3igh 8 ii 8 Eee %& 0 3igh

i 1un %& 0 &ery 3igh 8 ii 8 Eee %& 0 3igh

8 Reliance Broadcast 0 iii -ggressive

iv 8 Verdict I RB J 1B J E%

8 Reliance Broadcast 0 iii 2oderately good

iv 8 Verdict I 1% J E% J RB

8 Reliance Broadcast 0 iii &ery 3igh

iv 8 Verdict I RB J E% J 1%

8 Reliance Broadcast 0 iii 2oderate to 3igh

iv 8 Verdict I 1% J E% J RB

$n idea" choice of a stoc! 0ou"d %e one that has moderate ris! appetite and commands hi(h de(ree of confidence from sta!eho"ders for hi(h performance

Investment ,onsideration Va"uation

Inso"vency Measure Shareho"ders> profit +e%t service a%i"ity

#
4i5uidity AHuic! 3atioC

"
4i5uidity A,urrent 3atioC

;
7arnin( per share

?
)peratin( Profit

i 1un %& 0 ?+!9 8 ii 8 Eee %& 0 "+,*

i8 1un %& 0 ?+!9 ii 8 Eee %& 0 ?+""

i 1un %& 0 #,+;? 8 ii 8 Eee %& 0 '+,"

i 1un %& 0 ;?+9? 8 ii 8 Eee %& 0 "9+9*

8 Reliance Broadcast 0 iii ?+'?

iv 8 Verdict I 1% J RB J E%

8 Reliance Broadcast 0 iii "+?#

iv 8 Verdict I 1% J RB J E%

8 Reliance Broadcast 0 iii 4"+9'5

iv 8 Verdict I 1% J E% J RB

8 Reliance Broadcast 0 iii "!+;"

iv 8 Verdict I 1% J E% J RB

Mu"tip"es estimate
i8 ii8 iii 8

Tar(et Price 7stimate1

Rs, ;,!+#; K share Rs+ "9!+*; K share Rs+ B#+9; K share

4imit Variation
Rs+ B+"! K share Rs+ #,+?B K share Rs+ #+*; K share

Sun TV @ee TV 3e"iance 'roadcast

#+"B #+#, #+*!

1Procedure +as 2een dep#cted #n ,ppend#. 1

$ppendi* 3 ; Va"uation
01, 2V ,et / o4it 'e4o e 2a5 ,et Ca!6 F om *.e ating A(tivitie! ,et Ca!6 %7!ed in&84 om 9nve!ting A(tivitie! ,et Ca!6 %7!ed in&84 om Finan(ing A(tivitie! ,et %de( ea!e&8in( ea!e 9n Ca!6 and Ca!6 :;7ivalent! *.ening Ca!6 & Ca!6 :;7ivalent! Clo!ing Ca!6 & Ca!6 :;7ivalent! <ee :nte tainment ,et / o4it 'e4o e 2a5 ,et Ca!6 F om *.e ating A(tivitie! ,et Ca!6 %7!ed in&84 om 9nve!ting A(tivitie! ,et Ca!6 %7!ed in&84 om Finan(ing A(tivitie! ,et %de( ea!e&8in( ea!e 9n Ca!6 and Ca!6 :;7ivalent! *.ening Ca!6 & Ca!6 :;7ivalent! Clo!ing Ca!6 & Ca!6 :;7ivalent! +a 313 1013.9 # 83".77 $ #39.#6 $ 382.22 13.3" ##.21 "7."6 +a 313 9"1.9 670.# $ 281.1 $ 226.1 163.2 +a 312 1026.32 867.6# $330.78 $"77.66 $#0.#7 8#.68 ##.21 +a 312 733.8 3"8.8 21.# $#"8 +a 311 11"".32 11#1.37 $"82.28 $"06.99 "1.7 32.98 8#.68 +a 311 8##.22 #6".8# $2"1.6 $297.97 +a 310 866.#2 778.9" $66".2 $11".9# $2.19 3#."2 32.33 +a 310 608.3# 16#.2# 3##.03 $286.66 +a 309 666.1 611.## $#0#.62 $188.08 18.7# 1".78 3#."2 +a 309 376.19 181.#7 109.#" $202.7 Relian(e :nt ,et / o4it 'e4o e 2a5 ,et Ca!6 F om *.e ating A(tivitie! ,et Ca!6 %7!ed in&84 om 9nve!ting A(tivitie! ,et Ca!6 %7!ed in&84 om Finan(ing A(tivitie! ,et %de( ea!e&8in( e a!e 9n Ca!6 and Ca!6 :;7ivalent! *.ening Ca!6 & Ca!6 :;7ivalent! Clo!ing Ca!6 & Ca!6 :;7ivalent! +a 313 $23."1 $113.86 +a 312 $19."3 $67.9# +a 311 $11." $26." 0e. 310 $29.# $26.92 +a 310 $76.13 $6.86

$10.0"

$#.98

$26.2"

$3.13

$0."

121.07

73.9

$200.09

278.#7

$2.39

$2.83

0.98

$2"2.8#

2#8.#2

$9.7"

6.#7 3.6#

#."1 ".#9

260."2 7.68

12.1 260."2

21.8" 12.1

$77.8

$83.73

221.61

88.22

- $ottom:up /CF valuation was carried out for each of the three firms and the valuation of the firms were compared %he total shareholdersD $ase was picked up from annual reports and using this the stock price was determined for each firm

76.2 239. #

1"3.9 76.10

237.66 1"3.93

110.#3 332.0"

22.21 110.#3

Investment ,onsideration 3is!s

Type of 3is! +escription Pro%a%i"ity Impact HiLow Low h

Hih

=ack of @Cperience in the new $usiness space

11 )r(ani6ationa" 3is!s

>riority change in $usiness development =ack of proper channel communication in sales space

Hnpredicta$ility and insta$ility in technology

21 Technica" 3is!s

>roduct development compleCity Risks of -daptation of the new environment Insufficiency of %echnical eCcellence

@Cceeding the $udget

31 /inancia" 3is!s

3igh >roduction Costs 4Films, >rograms etc+5 3igh 2arketing, 1ales K /istri$ution Cost %aC and other Regulatory concerns

/ifficulty in /etermining Customer eeds

F1 Mar!et 3is!s

%hreat of 1u$stitution Competition %hreats, Risks of >roduct Imitation

G1 3esource 3is!s

Incompetent 3uman Resource 2anagement Insufficient %op 2anagement 1upport

Investment ,onsideration ,ata"ysts

Po"itica"

7conomic

4e(a"

#
201F 7"ections

"
Po"icy favoura%i"ity

;
&"o%a" Mar!et Scenario

?
3e(u"atory 7ase

i 1un %& 0 3ighly Lve 8 ii 8 Eee %& 0 3ighly Lve

i8 1un %& 0 &ery .ood ii 8 Eee %& 0 &ery .ood

i 1un %& 0 In favour 8 ii 8 Eee %& 0 3igh in favour

i 1un %& 0 2oderate 8 ii 8 Eee %& 0 2oderate

8 Reliance Broadcast 0 iii 8 Verdict I E% J 1%J RB

iv

8 Reliance Broadcast 0 iii 2oderately good

iv 8 Verdict I 1% J E% J RB

8 Reliance Broadcast 0 iii 2oderate in favour

iv 8 Verdict I EB J 1% J RB

8 Reliance Broadcast 0 iii =ow to 2oderate

iv 8 Verdict I 1% J E% J RB

$ (ood stoc! shou"d have positive mar!et e*pectations post the 201F e"ections mar!ed %y stron( positive mar!et movement and ease of re(u"atory po"icies

Investment ,onsideration 7stimatin( 3eturn

Profita%i"ity 3atios

Investment Va"uation

#
3eturn on Bet <orth

"
3eturn on $ssets

;
+ividend per share

?
/ree reserve per share

i 1un %& 0 ";+?"( 8 ii 8 Eee %& 0 #9+#*(

i8 1un %& 0 ,;+?# ii 8 Eee %& 0 ;B+#B

i 1un %& 0 9+B* 8 ii 8 Eee %& 0 "+**

i 1un %& 0 8 ii 8 Eee %& 0

I= I=

8 Reliance Broadcast 0 iii 4#;+,;(5

iv 8 Verdict I 1% J E%J RB

8 Reliance Broadcast 0 iii "#+B?

iv 8 Verdict I 1% J E% J RB

8 Reliance Broadcast 0 iii I=

iv 8 Verdict I 1% J E% J RB

8 Reliance Broadcast 0 iii I=

iv 8 Verdict I @Auivalent 4all5

Sun TV outshines a"" others in a"" the parameters and hence appears as the most favoura%"e stoc!1 In most other aspects, @ee TV performs %etter than 3e"iance /IB$4 37,)MM7B+$TI)B I SJB TV A'JEC # @77 TV A'JEC # 374I$B,7 7BT1 A2)4+C