Bullish on Den Networks: Gajendra Nagpal

ET Now spoke to Gajendra Nagpal, CEO, Unicon Financial Solutions for a fundamental check on Den Networks.

What about Den Networks?

At the moment, they are having a customer base of close to 7 million but then it is likely to go up to 18 million by 2013.

They are very strong on north part of the country. As a matter of fact, my own home has Den Cable coming in but then, they have been getting very strongly into other states also, Karnataka is one state that I am aware of that they are very strongly pursuing.

Point is the market itself is so huge and if digitisation happens the way TRAI has reported and the roadmap come in front of eyes, it seems like that lot of underreporting that was happening even in areas where these companies are strong.

Den is one company but this sector as a whole looks like in for a serious re-rating because a lot of underreporting that was happening by the local cable operators would not be possible if we digitalise.

That makes me to feel that there could be a lot of value unlocking that will happen going forward, not only that they would be able to reach out to the new territories but also lot of existing underreporting would also be curbed significantly. So that makes me even more bullish on the counter and obviously, it is a play on the domestic consumption economy.