What to buy among media stocks

Sudip Bandyopadhyay, Group Chairman, Inditrade Capital, is bullish on Sun and cautious on Zee.

On media stocks like Zee and Sun
I have been bullish on Sun and I maintain my bullish stance on Sun. The ad revenues are going up significantly. With the election season approaching it will boost ad revenues down south, particularly in Tamil Nadu, which is a large market for Sun. The challenge in terms of the OTT platform launched by Sun was visible but the kind of library Sun has, will definitely give it an edge in the Tamil OTT space. Overall, I have been bullish on Sun and it can be purchased even at current levels.

As far as Zee is concerned, again the business per se is doing good. The programmes are doing good. The ad revenues are improving but the challenge remains in terms of governance and in terms of ownership structure and the need for a strong promoter to be behind the venture. The challenges with the Subhash Chandra exiting but still maintaining some kind of control and no simple large investor emerging to control the business are concerns. Till the time these are addressed, the stock will not reach its potential. I will be a little cautious on Zee and maintain my positive view on Sun.

On C list like Suzlon and PC Jeweller moving up
It is a very good thing that midcap is moving up and even some good smallcaps are moving up. The more broad-based the rally, the better it is and we do not have this issue of only a few stocks moving up and the rest of the market languishing. But the concern stems from the fact that there are a lot of unworthy names which are going up and that has given little bit of fear that hopefully this is not the end of the rally. But having said that, this time it is different because the liquidity is profuse and more liquidity is on the way. The rally is expected to continue for some more time.

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