Sharekhan has given a longer term target of Rs.143 . The reasons given are recovery of economy leading to increase in advertising business ,and network 18 is now sufficiently funded to take care of the gestation period of its various business e.g. Viacom18 ..... being a holding company it would create significant value for equity holders in the longer term .
If you see the Quarterly results also , the sales have doubled from the June Quarter and the net loss is getting reduced . So I do not think there is much downside risk from this quarter onwards , and we can safely buy into every dip which may come along with any drop in the Sensex/Nifty . The worst is over for Network18 . Definitely 2008-09 was probably their worst year .
Another reason to invest in this stock is this is holding company og so many other companies . Home shop 18 has just raised funds which is one of its smaller arm. they have holding in DEN entertainment which is listing on 23 rd november. They have bought the stake at 20 crores. Once they list the value of stock they will be holding will be around 200-250 crore. They will surely unlock value for share holders. Hold it for 1 year to see stock around 250 level. Another stock to reap same benefir to client will be Crest Animation.
Network 18 not directly holds any shares in DEN, but TV18 holds 7% stake.. but i think their 80% subsidiary Indian film company(IFC) IS DOING WELL... i think at 800cr mktcap network 18 makes sense for investment. moreover i think the recent announcemen by network 18 group to restructure their broadcast operations and it will save over 65crore, that will directly boost their bottomline..i think the worst is over for the group, but will take time regain its old glory.
| NIFTY 
