TV Today, Buy
Hidden jewel
CMP=Rs140
We believe TV Today is a low risk investment, with potential re-rating triggers. Strong ad revenue growth in Aaj Tak and revival of Headlines Today will enable 36% CAGR in PAT over FY07-09E. Merger of Radio Today and launch of new channels would address the issue of scalability. Further, the company has investments of Rs24/share. We value the stock at Rs215 (EV/EBITDA of 10x FY10E) – a 54% upside. We initiate coverage with Buy.
MOST,
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