At first let me disclose that I am invested in this stock – it constitutes about 13% of portfolio. I am posting this to share my investment thesis, and also to receive feedback on the same.
Some of the Highlights
- Company has delivered Profitability in 8 out of 9 quarters in the last 2 years.
- Company’s employee cost is down from 44% in 2017 to 23.55% in Sep 2020. (Ref: Screener.in)
- Company’s Production Expenses are down from 111 Cr to 60.24 (Mar 2016) Cr in Mar 2020, Annually (Ref: https://www.valueresearchonline.com/)
- Company’s General Expenses are down from 123 Cr in 2016 to 81 Cr in 2020 (Ref: https://www.valueresearchonline.com/)
- Company’s Selling and Distribution Expenses are down from 128 Cr to 40 Cr. (Ref: https://www.valueresearchonline.com/)
- Company has consistently got rid of their top Anchors and are focusing on getting their TV business back to profitability.
- Their main focus has been NDTV.com and is consistently profitable for the company. Also they won 300+ cr deal with Taboola.com for Advertisements. Also their other online ventures doing well too.
- Their long term liabilities have decreased from 705 Cr in 2009 to 89 Cr in 2020. (Ref: Screener.in)
- Promotoers are very reliable and have consistently maintained 60+% holding in company.
- They closed down their Non Profitable business such as General Entertainment Channel and focusing on their core skills.
- Until now Promoters were not focusing on profitability of the company and I feel they are little emotional when taking some of the business decision. For. eg: Even though hindi news channel is loss making since ages, they are refusing to shut it down.
- The biggest threat for NDTV is Goverment, Especially NDTV is very risky stock when it comes to goverment trying to control the media.
- Get rid of some of the loss making business such as Hindi News Channel or NDTV Profit.
- Focus on Online News.
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