Media industry has disappointed: Dipan Mehta, Member BSE and NSE

Dipan Mehta, Member BSE and NSE, in a chat with ET Now talks about the media space.

Do you like anything in media pocket?

We used to track it quite closely but the entire industry has disappointed us big time. So we have basically dropped coverage and we do not find any media company interesting at all. It is a bit of a mess over there, there is hardly any pricing power with any media company. There is no premium for any brand with any broadcasting company for that matter.

Within the media, if you still want to play, the film production companies are interesting but markets have corrected by almost 20%. So investor should focus on blue chip large cap companies which they have missed over the past 12 to 24 months. They are available at attractive valuations. This is the time to rebuilt the portfolio and improve the quality significantly.

So my advice would be that let us not dabble or look at the midcap stocks, focus on the larger ones whichever industry you like if it is infrastructure then there would be L&T, BHEL. If it is pharma then there would be Dr. Reddy, Sun Pharma. If it is automobiles then go for the best that is M&M, Tata Motors, Bajaj Auto. So that is the way to play the market at this point of time where clearly you are trying to get into a good quality stocks at reasonable PE multiples and these are companies which are basically non-dilutive which means their shares always will be in short supply and they do end up being the favourite of the FII investors as well.

Usual disclosure is that we have investments recommendations in all these blue chips stocks at present.