Prefer Inox Leisure, TV Today over Sun TV: Avinnash Gorakssakar

In a chat with ET Now, Avinnash Gorakssakar, Head of Research, Miintdirect.com talks about media stocks.

ET Now: let us talk about Sun TV. The promoter group has mentioned that they will seek legal recourse against the ED's move. But, there are concerns over how the stock is going to perform. What do you think happens in the near term?

Avinnash Gorakssakar: Wherever there is an uncertainty with some amount of political connectivity, I would say that most of the investor would be little apprehensive, before putting fresh money on the counter. Clearly, this group has always been in news, but for the wrong reasons.

There are better choices available. Why put money in Sun TV? For a low risk investor — somebody who is looking at strong visibility of earnings — the last thing on his mind would be developments like this.

Stocks of Sun TV stock may actually bounce back in the coming few days, but quality-wise it is better to put a money on other stocks such as TV Today and Inox Leisure. Broadcasting players clearly have a big future, but the group here is clearly politically very-sensitive to such kind of news flow.