Pick of the week- Network 18

Here is my latest pick from the Media sector. I think this sector has a lot of potential to grow in the coming times.
This is a particular stock which I think is a pure gem.

Network 18 FinCap is the holding company of the Television Eighteen Group and has become one of the strongest media houses in our country. The company owns some of the best media properties such as CNBC TV18, CNN IBN, Awaaz, IBN 7 ,Internet portals under Web18, film production business under Studio 18, a recent joint venture with Viacom and home shopping business.



You would have seen its current makeover and rebranding of the conglomerate as Network18.

Underlying principles :-

1. Strong foothold in the business news space.
2. Gaining market share in general news space. Ad revenues to grow.
3. Web 18 is in a strong investment phase and returns are going to be huge after the gestation period. Returns through advertising and subscription fees.

• moneycontrol.com
• easymf.com
• poweryourtrade.com
• commoditiescontrol.com
• Indiwo.com
• CompareIndia.com
• NewsWire 18
• IndiaEarnings.com
• CricketNext.com
• Buzz18.com
• Josh18.com
• IBNLive.com
  

4. HomeShop 18 is going to take a pie in Retail business and marketing will be supported by its strong media foothold.
5. It has a joint venture with Viacom for various channels like VH1, MTV and Nickelodeon.

This is a rising star in its category with appriciation expected through growth and value unlocking.

Though TV18 and GBN are also listed. This stock gives you a pie in each of Network 18 business

Recommended at Rs 350 few weeks back.

Current Market Price : Rs 400

Can expect 50% appriciation in 6-8 months.

Disclaimer : I have holdings in TV18 and Network18.