ICICIdirect recommended Buy on TV Today (TVTNET) with target of Rs 300 against current market price of Rs 211.
 
Commenting on the investment rationale, the stock broker said," Ad revenues for TV Today are expected to grow at 16.4% CAGR over FY14-16E to Rs 4.60 billion, primarily led by rate hikes. Subscription revenue, lower than half of its competitors, has ample scope for growth as digitization penetrates further. With digitization in phase III and IV cities, TV Today would be able to better monetize its reach as it enjoys a far stronger position in the smaller cities and towns in the Hindi speaking belt.

However, with a delay in shift towards digitization, we have built in a nominal growth of 7.5% in this revenue stream. The fixed nature of operational cost provides high operating leverage, which is already reflected in 216% growth in EBITDA with 24.6% revenue growth in FY14."

Disclaimer: IRIS has taken due care and caution in compilation of data for its web site. Information has been obtained by IRIS from sources which it considers reliable. However, IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website.