TV Today Network Gains Momentum After ₹20 Crore MoU with Creative Channel Advertising
TV Today Network’s Strategic Move in FM Radio Segment
TV Today Network Gains Momentum : T.V. Today Network Ltd, a leading player in the Indian media industry, has made a significant move by signing a Memorandum of Understanding (MoU) with M/s Creative Channel Advertising and Marketing Pvt. Ltd for ₹20 crore. The deal involves the proposed sale of the company’s FM radio broadcasting operations, which include three major stations in Mumbai, Delhi, and Kolkata under the frequency 104.8 FM. This move aligns with the company’s strategic realignment, allowing it to focus more on its core television broadcasting and digital media businesses.
Stock Market Reaction
The announcement of the MoU had a noticeable impact on T.V. Today Network’s stock. The shares of television broadcasting companies witnessed a gain of up to 2% from their intraday low following the deal’s disclosure. However, at the time of writing, T.V. Today Network Ltd’s shares were trading at ₹160.95 per share, reflecting a minor dip of 0.09% from the previous closing price of ₹161.10 apiece. The company currently holds a market capitalization of ₹960.37 crore.
Financial Performance and Ratio Analysis
Despite the recent strategic developments, T.V. Today Network’s financial performance in the latest quarter showed a decline in revenue and profitability.
| Financial Metrics | Q3FY24 | Q3FY25 | Change (%) |
|---|---|---|---|
| Revenue | ₹262.69 Cr. | ₹236.76 Cr. | -10% |
| Net Profit | ₹29.12 Cr. | ₹8.73 Cr. | -70% |
The company has faced a significant drop in net profit, reflecting a challenging environment in the media industry.
Key Financial Ratios
| Ratio | FY22-23 | FY23-24 |
|---|---|---|
| Return on Equity (ROE) | 10.65% | 6.49% |
| Return on Capital Employed (ROCE) | 15.51% | 9.54% |
| Net Profit Margin (NPM) | – | 5.92% |
The decline in ROE and ROCE indicates reduced profitability and efficiency in capital utilization.
Company’s Market Position and Competitive Strength
T.V. Today Network Ltd remains a dominant player in the Indian news broadcasting sector. Aaj Tak, the company’s flagship Hindi news channel, continues to be the market leader under BARC’s new Audience Measurement System, boasting an impressive 85 crore Gross AMAs. Additionally, India Today Television has secured top rankings in key news and event segments, reaffirming the company’s strong foothold in the industry.
Company Overview and Stock Market Fundamentals
T.V. Today Network Ltd operates multiple television news channels, including Aaj Tak, Tez, and Aaj Tak HD in Hindi, along with India Today Television in English. It also owns radio stations under the Ishq 104.8 FM brand, which are now part of the ₹20 crore MoU deal.
Here’s a snapshot of the company’s latest stock market and financial statistics:
| Metric | Value |
|---|---|
| Market Cap | ₹946 Cr. |
| Current Price | ₹159 |
| 52-Week High/Low | ₹308 / ₹157 |
| Stock P/E | 11.4 |
| Book Value | ₹147 |
| Dividend Yield | 5.34% |
| ROCE | 9.68% |
| ROE | 7.04% |
| Face Value | ₹5.00 |
| Promoter Holding | 58.4% |
| Debt to Equity | 0.04 |
| Price to Earnings Ratio | 11.4 |
| Pledged Shares | 0.00% |
| Quarterly Profit Variation | -70.0% |
| Industry P/E | 11.4 |
| Graham Number | ₹210 |
| Intrinsic Value | ₹236 |
| RSI | 28.7 |
| EPS (Earnings Per Share) | ₹13.4 |
| Number of Equity Shares | 5.97 Cr. |
| PEG Ratio | -0.78 |
| 200-Day Moving Average (DMA) | ₹212 |
| Free Cash Flow (3Yrs) | ₹217 Cr. |
| Free Cash Flow (Latest) | ₹-3.61 Cr. |
| Total Debt | ₹31.7 Cr. |
What This Means for Investors
The sale of the FM radio business could provide liquidity for T.V. Today Network to reinvest in its core businesses, potentially driving long-term growth. However, the company’s declining profitability and lower return on equity might raise concerns among investors.
From a technical standpoint, the stock has an RSI of 28.7, which suggests that it is in the oversold zone. This could indicate a potential rebound if market sentiment turns positive. Additionally, with an intrinsic value of ₹236, the stock appears undervalued compared to its current market price of ₹159, making it an interesting pick for value investors.
Final Thoughts
The MoU with Creative Channel Advertising for ₹20 crore marks a pivotal moment for T.V. Today Network as it streamlines its business operations. While the company continues to dominate the television news space, investors should carefully monitor its financial performance and market trends. The stock’s current valuation and oversold technical indicators present a mixed investment opportunity—potential for recovery but with underlying risks due to declining profits.
This strategic move is expected to shape the future of T.V. Today Network as it navigates the evolving media landscape in India.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.