Mr.Basant, The analysis on TV18 is quite interesting and in depth. Also in the same media related space there is a another company Hinduja TMT that has decided to demerge its business. Have you done any sort of similar analysis on Hinduja TMT? That analysis would also be very helpful for investors to gain knowledge on HTMT.
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Posted: 06/Sep/2006 at 7:03pm
HTMT could rise in a similar mode. people with 6 months - 1 year should double money.Their mkt cap is 2300 crs and money made from hutch stake is around 2k crores now think!!!
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Posted: 06/Sep/2006 at 10:54pm
Mr. Basant,will there be any tax liablity on receiving the 5 paid-up shares of the 2 companies.That may depress current TV 18 price vis-a-vis the new entity prices.
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Posted: 06/Sep/2006 at 11:02pm
No. Not that I heard of.The compoany is being split so there is no income as such.
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Posted: 06/Sep/2006 at 6:58am
Thank you. But for the time being we will take it as indicative only. The internet bueiness is the real kicker and should surprise on the upside. In about 18 months the internet business should be valued at what the WHOLE company is valued today but we would rather be conservative and take things as they come.
Edited by basant - 06/Sep/2006 at 7:03am
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Posted: 08/Sep/2006 at 12:59pm
You are looking at stand alone numbers should look at consolidated numbers. I think we discussed this aspect elsewhere on the forum also. For companies that have a high operating margin the market cap to sales will always be higher
That is why we cannot compare mkt cap to sales for one company to another within different sectors.we can compare TV 18 with an NDTv but not TV 18 with SAIL.
World over media companeis are valued at free cash flow basis and also on content. ZEE has some of the best content libraries in India. theyt could run a movie 10 times in 10 years but money is paid only once.Now if the company is writing it off then over aperiod of time an immense value of hidden assets are created.
News company do not have that advantge because you cannot run a news clip of 1988 in 2008. But still they are valuable in the sense content comes free - people talk about events/stocks/politics and anchors facilkitate the discussion!!!
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