Buy TV18 Broadcast Ltd - Management Meet Update - Kotak

Our recent interaction with the management of TV18 provides us reason to be positive on the stock on several counts: 1/ likely resolution of the ETV stake issue in the next few months, 2/ reduction of ETV (Entertainment) losses likely in the coming quarters, starting 3QFY14, 3/ benefits from political advertising for the company's standalone as well as ETV news operations. Negative news-flow is likely to be contained, we think, as : 1/ the impact of Dish TV impasse is unlikely to be significant, 2/ potentially negative regulations (TRAI advertising cap for news channels, changes in aggregators' businesses) are likely to be delayed on account of legal hurdles.

We maintain BUY, with a price target of Rs 30.

Source : Equity Bulls

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