Buy Network 18, targets Rs 90.5 and Rs 100: HDFC Securities

HDFC Securities has buy call on Network 18 Media & Investments with targets of Rs 90.5 and Rs 100.

Time period given by analyst is 1-3 months when the stock price can reach defined target. HDFC Securities recommended to keep stoploss at Rs 77.

Network 18 Media & Investments Ltd., incorporated in the year 1996, is a Small Cap company (having a market cap of Rs 8893.83 crore) operating in Media & Entertainment sector.


Investment Rationale
Network 18 has corrected from a high of 115 touched in December 2021. The stock recently found support at the 72 levels in March 2022 and has strongly bounced back from these levels in the last few weeks.

This week, the stock broke out of the 76-81 range on the back of healthy volumes, indicating the stock is set to continue its intermediate uptrend.

Daily momentum readings like the 14-day RSI are picking up, which is encouraging. The Relative Strength Comparative indicator too is climbing higher, indicating the stock is likely to outperform the Nifty index.

With the intermediate technical setup looking positive, the brokerage believes the stock has the potential to move higher in the coming weeks and therefore recommend a buy.

Financials
For the quarter ended 31-12-2021, the company has reported a Consolidated Total Income of Rs 1674.90 crore, up 20.29% from last quarter Total Income of Rs 1392.35 crore and up 17.42% from last year same quarter Total Income of Rs 1426.38 crore. Company has reported net profit after tax of Rs 290.39 crore in latest quarter.

Promoter/FII Holdings
Promoters held 75.0 per cent stake in the company as of 31-Dec-2021, while FIIs owned 4.82 per cent, DIIs 0.44 per cent.