STOCK SCANNER

India: Digitisation positive for cable TV

This is my old post regarding Cable Digitization in Indianmetros...I am again posting this info to have a look at my recos 

The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers.
The much-awaited Cable TV Networks Regulation Amendment Bill was finally passed by the Lok Sabha on Tuesday paving the way for the next digital wave in the country.

The move will cheer investors of DTH operators and Multiple System Operators like Den Network and Hathway Cables.
The Bill aims to digitise India's vast cable TV network by the end of 2014.
The cable networks in the four metros will be digitized by the end of June 2012. Currently, the total TV household subscriber base is 135 million out of which close to 110 million are analog subscribers
With this Bill being passed, nearly 80 per cent of the subscribers who are under-declared in the analogue regime will be forced to go digital, translating into higher revenues across the chain.
The move is also expected to benefit broadcasters as it will help derisk their revenue base by increased subscription revenues through advertising revenues. While this move is expected to be a win-win for all stakeholders, it has faced stiff opposition from Local Cable Operators who will be compelled to allign with MSOs.

With digitization, viewers stand to benefit with more number of channels and better quality viewing. But with the capital requirement for digitization estimated at Rs 20,000 crore, it is going to be a cash guzzling task.

SP I RECOMMEND HATHWAY CABLES AT RS.110 FOR A TARGET OF 240 WITH A ONE YEAR PERSPECTIVE AND DEN NETWORK AT RS.54 FOR A TARGET OF RS.250 IN COMING YEARS

BUY INFO-EDGE FOR VALUE PICK

The recruitment scenario through the online mode, has remained reasonably good despite apprehensions of a slowdown in the economy.

Sectors such as IT have not cut down on their projections of intake in manpower. Info Edge offers a good opportunity for investors with a two-year horizon. It offers a play on the increasing popularity of online portals that offer free and paid services for a variety of activities such as job search, marriage and home finding.

Continuous improvements in resume registrations in naukri.com and ever expanding non-recruitment business through portals such as jeevansathi.comand 99 acres.com are key positives for the company.

At Rs 711, the share trades at 24 times its likely per share earnings for FY13. This is lower than the levels it has traded at historically. Besides, its financial growth rate and lack of listed Indian peer, justify its relatively higher valuations compared to the broader markets.

In FY12, Info Edge's revenues increased by 29.3 per cent over the previous fiscal to Rs 416.5 crore, while net profits improved by 46 per cent to Rs 122.6 crore.

That it has managed these figures in a slowing economy suggests that the company's business-mix helps it stay resilient.

RECRUITMENT BUSINESS STRONG

Info Edge's recruitment portal naukri.com has had a good run over the past few years; it did reasonably well even in the slowing economy last year. The total recruitment business accounts for over 80 per cent of the company's revenues.

In FY-12 alone, the number of resumes on the portal rose to 29 million, up 4 million from a year earlier. What is even more desirable is the fact that the number of resumes modified daily has increased from 72,000 to 91,000. This suggests continuous interest from existing pool of customers. Data from agencies such as Comscore, suggests that naukri is ahead of portals such as timesjobs and monsterindia with a traffic share of 60 per cent.

The IT (25 per cent of revenues), infrastructure (21 percent) and BFSI (5 per cent) sectors form the bulk of recruiters on the portal. Large software companies such as TCS and Cognizant have not announced any cut in their intakes for the year, which means that the perceived slowdown may be very company-specific in this sector.

In the infrastructure sector too, large companies such as L&T and BHEL are still in the hiring mode. The segment also witnesses high attrition, which is a good thing for job portals. Banks, especially public sector ones, are likely to continue hiring, given their talent crunch and exit or retirement in middle- and senior managements.

Notably, advertising for vacancies is rapidly vanishing from the print space in favour of online recruitment, with even public sector companies calling for positions though online ads and registrations. In this regard portals such as naukri would be beneficiaries.

OTHER SEGMENTS STEP UP

Apart from its recruitment business, Info Edge has witnessed increasing contribution from its other key segments such as marriage portal (jeevansathi.com) and its real-state focused Web site (99acres.com). From accounting for next to nothing a few years back, these segments now contribute to 20 per cent of revenues and have been growing at a faster clip than the overall company rate.

Jeevansathi.com has seen continuous increase in the number of profiles created. Marriage being a non-cyclical event is less susceptible to macro-economic shocks. In fact, the average amount realised per customer has risen 14.6 per cent in 2011-12 to Rs 3120.

In 99acres.com too, the number of paid transactions has increased rapidly. The company has recently launched meritnation.com, a Web site that caters exclusively to school-going children. It offers study material, NCERT solutions, and interactive learning solutions. While the business is at a nascent stage, it holds value given, Info Edge's ability to monetise its Web offerings.

RISK

The marriage and real-estate portal are loss-making, face heavy competition and are not the top players in those segments, unlike the recruitment portal. Any increase in advertising spends for greater brand visibility or cutting of prices to take on competition can hurt margins.

THIS RECOMMENDATION IS FROM BUSINESSLINE.I JUST SHARED THIS FOR MY CLIENTS

BUY INFO-EDGE FOR LONG TERM

The recruitment scenario through the online mode, has remained reasonably good despite apprehensions of a slowdown in the economy.

Sectors such as IT have not cut down on their projections of intake in manpower. Info Edge offers a good opportunity for investors with a two-year horizon. It offers a play on the increasing popularity of online portals that offer free and paid services for a variety of activities such as job search, marriage and home finding.

Continuous improvements in resume registrations in naukri.com and ever expanding non-recruitment business through portals such as jeevansathi.comand 99 acres.com are key positives for the company.

At Rs 711, the share trades at 24 times its likely per share earnings for FY13. This is lower than the levels it has traded at historically. Besides, its financial growth rate and lack of listed Indian peer, justify its relatively higher valuations compared to the broader markets.

In FY12, Info Edge's revenues increased by 29.3 per cent over the previous fiscal to Rs 416.5 crore, while net profits improved by 46 per cent to Rs 122.6 crore.

That it has managed these figures in a slowing economy suggests that the company's business-mix helps it stay resilient.

RECRUITMENT BUSINESS STRONG

Info Edge's recruitment portal naukri.com has had a good run over the past few years; it did reasonably well even in the slowing economy last year. The total recruitment business accounts for over 80 per cent of the company's revenues.

In FY-12 alone, the number of resumes on the portal rose to 29 million, up 4 million from a year earlier. What is even more desirable is the fact that the number of resumes modified daily has increased from 72,000 to 91,000. This suggests continuous interest from existing pool of customers. Data from agencies such as Comscore, suggests that naukri is ahead of portals such as timesjobs and monsterindia with a traffic share of 60 per cent.

The IT (25 per cent of revenues), infrastructure (21 percent) and BFSI (5 per cent) sectors form the bulk of recruiters on the portal. Large software companies such as TCS and Cognizant have not announced any cut in their intakes for the year, which means that the perceived slowdown may be very company-specific in this sector.

In the infrastructure sector too, large companies such as L&T and BHEL are still in the hiring mode. The segment also witnesses high attrition, which is a good thing for job portals. Banks, especially public sector ones, are likely to continue hiring, given their talent crunch and exit or retirement in middle- and senior managements.

Notably, advertising for vacancies is rapidly vanishing from the print space in favour of online recruitment, with even public sector companies calling for positions though online ads and registrations. In this regard portals such as naukri would be beneficiaries.

OTHER SEGMENTS STEP UP

Apart from its recruitment business, Info Edge has witnessed increasing contribution from its other key segments such as marriage portal (jeevansathi.com) and its real-state focused Web site (99acres.com). From accounting for next to nothing a few years back, these segments now contribute to 20 per cent of revenues and have been growing at a faster clip than the overall company rate.

Jeevansathi.com has seen continuous increase in the number of profiles created. Marriage being a non-cyclical event is less susceptible to macro-economic shocks. In fact, the average amount realised per customer has risen 14.6 per cent in 2011-12 to Rs 3120.

In 99acres.com too, the number of paid transactions has increased rapidly. The company has recently launched meritnation.com, a Web site that caters exclusively to school-going children. It offers study material, NCERT solutions, and interactive learning solutions. While the business is at a nascent stage, it holds value given, Info Edge's ability to monetise its Web offerings.

THIS IS STOCK RECOMMENDED BY BUSINESSLINE.I SHARED THIS FOR MY CLIENTS

RISKS

The marriage and real-estate portal are loss-making, face heavy competition and are not the top players in those segments, unlike the recruitment portal. Any increase in advertising spends for greater brand visibility or cutting of prices to take on competition can hurt margins.

BUY SELECTIVE MIDCAP STOCKS

One can buy some selective infra and power names like gvkpil, gmr infra,lanco and suzlon at current levels bcoz I expect some positive outcome in budget for infrastructure and these companies will b benefited..Traders are now concentrating on these stocks.So consider buying theses infra names for a 2-3 months tme frame

RBI CUT CRR BY 75 BPS

RBI had cut CRR by 75 bps last week due to tight liquidity crunch followed by advance tax for corporates...This may lift the sentiments in market over near term and banking and realty stocks may see some positiove movements

THANKS TO MB4FIN.COM

The malayalam report on how to buy shares is from matrubhumi site...I am thankful to its author and paper.I just use this report to give finacial education for investors and traders