The year 2024 promises an exciting trajectory for Media and Entertainment stocks in India, marked by high-profile events. The 17th season of the Indian Premier League (IPL), an iconic cricket extravaganza, is anticipated to captivate the nation’s attention. Simultaneously, the political landscape will be ablaze with the 18th Lok Sabha elections. The determination of the 15th Prime Minister of India will be followed by the Assembly elections across eight states which will witness high political drama. Given India’s penchant for robust advertising and campaigning during elections, this year is projected to be a win-win for Media stocks in the country.
The landscape becomes even more compelling with the release of blockbuster movies featuring A-list superstars and colossal budgets. Movies like Fighter, Singham Again, and the much-awaited Pushpa-2 are anticipated to create a cinematic storm, propelling Indian Multiplexes to unprecedented success.
Adding to the media frenzy, the successful landing of Chandrayaan-3 last year brought immense pride to India. This momentous occasion was thoroughly covered by the media industry, presenting the nation’s achievements to a global audience. As India continues its space exploration journey, the upcoming ISRO missions in 2024—Gaganyaan, NISAR, and SPADEX—are expected to be broadcast globally, further elevating the country’s standing in space exploration.
These events come together to present 2024 as a package deal for the Indian media and entertainment industry, with good expectations for media stocks in India both this year and in the years to follow. As we go into more detail about these fascinating advancements, stay tuned.
Also read: Tourism Stocks In India: Emerging Trends From Taj Mahal To BSE
Industrial Trend – Media & Entertainment sector in India
India’s entertainment and media industry is set for a 9.7% annual revenue growth, reaching US$ 73.6 billion by 2027, per IBEF reports. EY predicts India’s Media and Entertainment Industry to hit Rs. 2.34 trillion (US$ 29.2 billion) and grow at 10% CAGR to Rs. 2.83 trillion (US$ 35.4 billion) by 2025.
The Indian Government actively backs this growth by digitizing cable distribution, raising FDI limit from 74% to 100%, and granting industry status to the film sector. FDI inflows in information and broadcasting, including print media, totaled US$ 10.14 billion from April 2000 to March 2023. In 2022, the Indian media and entertainment sector saw a robust 19.9% growth, surpassing Rs. 2 trillion (US$ 24 billion) in annual revenue, driven by a surge in digital advertising. Indian OTT platforms showed significant global growth, with a 194% increase in revenue from international viewers over the last two years.
CRISIL forecasts a 13-15% increase in print media revenue this year, with an expected reach of Rs. 30,000 crore (US$ 3.63 billion) in FY24. Additionally, Advertising revenue in India is projected to reach Rs. 394 billion (US$ 5.42 billion) by 2024. Additionally, It is estimated that by 2024, revenue from advertising in India will reach Rs. 394 billion, or US$ 5.42 billion.
India’s Ministry of Information and Broadcasting Secretary, Mr. Apurva Chandra, declared that the government is drafting an AVGC (Animation, Visual Effects, Gaming, and Comic) policy and establishing an AVGC Mission shortly. The source of information is IBEF, an initiative by the Department of Commerce, Ministry of Commerce and Industry, Government of India.
Explore the Top performer Stocks of the year 2023. Market stars! Do you own one?
Sectoral Distribution of Media Stocks in India 2024
The Media & Entertainment sector in India is considered a sunrise industry for the economy, and is expected to grow at a much faster rate than the global average. According to the Nifty Media Index, the sectoral distribution of Media Stocks in India in 2024 is as follows. Additionally, there are other stocks not yet in the index but performing well. Let’s take a closer look at five stocks from the sector poised to benefit from the high-profile events scheduled for 2024.
Start Your Journey With ICICI Demat and Trading Account
If you have landed on this page, you are probably planning to start your investment journey. We are glad to hear that because, in the ever-changing economic scenario of the Indian economy, there is an opportunity for all. Open your Demat and Trading Account with ICICI direct.
Learn why you should choose a Demat and Trading A/C with ICICI direct. Click This Link to Get Started.
Media Stocks in India 2024
Also explore the Semiconductor Stocks In India: Rise Beyond The Silicon Valley
Let’s Explore Some Of The Media Stocks in India 2024
TV18 Broadcast Ltd
TV18 Broadcast Ltd is a mid-cap company with a Market Capitalization of ₹ 10,768 Cr. The company is currently navigating challenges with a low ROCE of 2.75% and ROE of 2.46%, reflecting a less favorable performance. The price-to-earnings ratio is notably high at 116.63, surpassing its sector PE ratio of 55.01. In the aftermath of the pandemic’s impact on the economy, the company is in a recovery phase, evident in the EPS standing at 0.54 Rs per share, albeit showing a declining trend, which raises concerns.
On a positive note, the debt-equity ratio is healthy at 0.88, being less than 1. Promoter Share Holding has remained constant at 60% in the most recent quarter. Despite economic challenges, the Annual Revenue recorded a 7% increase, reaching Rs 6,038.11 Crores in the last year. Remarkably, the Stock Price surged by 71.68%, outperforming its sector by 17.25% over the past year, indicating a resilient market performance amid the recovery phase.
The company’s financials are not that impressive so what attracts about it?
3-Year Performance:
-Profit Growth Compounded: -23%
-CAGR for Stock Price Growth: 27%
-Growth in Compound Sales: 5%
-Equity Return: 9%
Twelve-Month Trailing Period (TTM) Performance:
-Profit Growth Compounded: -81%
-CAGR for Stock Price: 77%
-Growth in Compound Sales: 40%
-Equity Return: 2%
The company exhibits signs of growth, being a penny stock and a prominent player in the sunrise sector of the economy. With its reputation and position, it has notable potential for expansion in the coming years.
Explore the future with The Best Green Energy Stocks For The Future
GTPL Hathway Ltd
GTPL Hathway Ltd, a small-cap company with a Market Cap of ₹ 2,185 Cr, maintains robust profitability with a 15.2% ROCE and an 11.8% ROE. Higher profitability ratios are favorable. The price-to-earnings ratio is 26.65, below its sector PE ratio of 55.01. The company boasts a positive EPS of Rs 7.30 per share, signaling earnings consistency. However, EPS has declined in the past 3 years.
The debt-equity ratio is notably healthy at 0.13, falling below 1. Promoter Share Holding remains constant at 75% in the latest quarter. Encouragingly, the Annual Revenue experienced a substantial 10.47% growth in the last year, reaching Rs 2,713.99 Crores. While the Stock Price recorded a noteworthy 40.79% rise, it underperformed its sector by 13% in the past year, suggesting some market challenges despite positive financial indicators.
3-Year Performance:
-Profit Growth Compounded: 3%
-CAGR for Stock Price Growth: 12%
-Growth in Compound Sales: 4%
-Equity Return: 19%
Twelve-Month Trailing Period (TTM) Performance:
-Profit Growth Compounded: -50%
-CAGR for Stock Price: 47%
-Growth in Compound Sales: 20%
-Equity Return: 12%
In summary, GTPL Hathway Ltd showcases impressive figures across various parameters.
D B Corp Ltd
D B Corp Ltd is a mid-cap stock with a market capitalization of ₹ 5,361 Cr. The company exhibits commendable profitability ratios, boasting an 11.8% ROCE and an 8.88% ROE. Notably, the price-to-earnings ratio is 19.93, below its sector PE ratio of 113.93. With an EPS of Rs 15.07 per share, consistently growing for the past 3 years, the company showcases robust financial health.
The debt-equity ratio of 0.02 is healthy, staying below 1. Maintaining a commendable dividend payout of 54.1%, the company reflects stability. While Promoter Share Holding slightly decreased by 0.02% in the latest quarter to 71.95%, Mutual Fund Holding increased by 0.31% to 4.11%. Impressively, the Annual Revenue witnessed a substantial 21.23% rise in the last year, reaching Rs 2,168.25 Crores. The Stock Price soared by an impressive 131%, outperforming its sector by 101.82% in the past year, underscoring strong market performance and financial resilience.
3-Year Performance:
-Profit Growth Compounded: -15%
-CAGR for Stock Price Growth: 53%
-Growth in Compound Sales: -1%
-Equity Return: 8%
Twelve-Month Trailing Period (TTM) Performance:
-Profit Growth Compounded: 41%
-CAGR for Stock Price: 131%
-Growth in Compound Sales: 9%
-Equity Return: 9%
In conclusion, D B Corp Ltd plays a vital role in the Media & Entertainment sector in India.
Vertoz Advertising Ltd
Vertoz Advertising Ltd, a small-cap company with a Market Capitalisation of ₹ 878 Cr, defies its low market value with generous profitability ratios. The company boasts a 19.0% ROCE and a 14.9% ROE, showcasing robust financial performance. The price-to-earnings ratio is 63.35, surpassing its sector PE ratio of 56.18. With an EPS of Rs 11.89 per share, the company signals consistent earnings, which is positive and growing.
The debt-equity ratio is a healthy 0.08, staying below 1. Although Promoter Share Holding decreased by 7.37% in the latest quarter to 48.96%, the company has maintained stability. Impressively, the Annual Revenue witnessed a significant 96.58% rise in the last year, reaching Rs 83.76 Crores. The Stock Price surged by an outstanding 164.68%, outperforming its sector by 110.69% in the past year, highlighting strong market performance and financial resilience.
3-Year Performance:
-Profit Growth Compounded: 40%
-CAGR for Stock Price Growth: 42%
-Growth in Compound Sales: 27%
-Equity Return: 13%
Twelve-Month Trailing Period (TTM) Performance:
-Profit Growth Compounded: 101%
-CAGR for Stock Price: 165%
-Growth in Compound Sales: 159%
-Equity Return: 15%
In summary, Vertoz Advertising Ltd stands as a notable player in the media industry.
Also read: Nifty 50 Stocks List With Weightage In 2024: From A To Z
MPS Ltd
MPS Ltd, a small-cap company with a Market Capitalisation of ₹ 2,925 Cr, stands out with commendable financial metrics. The company boasts a commendable ROE of 25.45% and a robust ROCE of 33.7%, both considered desirable in the industry. The price-to-earnings ratio is 23.96, below its sector PE ratio of 113.93. Notably, MPS consistently enhances its Earnings per Share over the past 3 years, with the TTM EPS standing at a positive and growing 56.67 Rs per share.
The company’s Debt-to-equity ratio is zero, which signifies a debt-free status. Promoter Share Holding remains steady at 68.34% in the latest quarter. MPS demonstrates steady growth with an Annual Revenue surge of 10.55% in the last year, reaching Rs 511.82 Crores. The Stock Price surged by an impressive 83%, outperforming its sector by 54.32% in the past year, reflecting robust market performance and financial strength.
3-Year Performance:
-Profit Growth Compounded: 22%
-CAGR for Stock Price Growth: 69%
-Growth in Compound Sales: 17%
-Equity Return: 21%
Twelve-Month Trailing Period (TTM) Performance:
-Profit Growth Compounded: 31%
-CAGR for Stock Price: 84%
-Growth in Compound Sales: 11%
-Equity Return: 25%
Overall, MPS showcases the potential for growth and continued success in the market.
Explore the Railway Stocks In India In 2024: The Engine Of Growth
Conclusion
Summing up, we have explored what 2024 has stored for the Media Stocks in India 2024. History shows that elections in India are among the most expensive events globally. Political parties pour money like rain in campaigns and advertisements. According to a report by the Center for Media Studies, approximately Rs 55,000 crore, or $8 billion, was spent during the 2019 Lok Sabha elections. The report notes that in 20 years, from 1998 to 2019, election expenditure has surged nearly sixfold from Rs 9,000 crore to around Rs 55,000 crore.
Apart from that, our cricket board, BCCI, is the richest in the world and the IPL is the most popular cricket league globally. Cricket fans enjoy this festival with enthusiasm for nearly 2 months every year. The 2023 edition of the Indian Premier League witnessed a significant growth in advertising revenue to ₹10,120 crore, according to a recent report. PVR rally will not stop anytime soon since films like Pathaan and Gadar2 ended the drought post-pandemic era. All in all, the Media and Entertainment sector is one of the promising sectors with the potential to boost the Indian Economy.
That’s all for today’s post. Hope you get some valuable insights from here.
Happy reading!
Disclaimer
The blog is meant for informational purposes and serves the general analysis of the stocks. The contents provided here are based on careful research and analysis utilizing the fundamental and technical indicators over a while. The post does not have any direct recommendations about investing or trading in the securities market. Thorough research and careful consideration are necessary for individuals to fulfill their responsibility in making financial decisions. Seeking professional advice before making any financial decisions is always advisable.
