Stock Recommendations For Your Portfolio

TV TODAY NETWORK | BSE CODE: 532515| VOLUME: 279461 | CMP: Rs.218 | FACE VALUE: Rs.5

TV Today Network (TVTN) with its flagship channel Aaj Tak has been able to maintain its dominant position in the fiercely competitive Hindi news segment for over a decade. During the first half of FY15 the company has performed very well. After the completion of full digitisation and commencement of package-wise and gross billing, the benefits are expected to start flowing in. During the first half, TVTN reported 38 per cent growth of revenue at Rs 256 crore against Rs 184.57 crore in H1 FY14. Its PAT was even better, registering a growth of 85.3 per cent for H1 FY15 to Rs 46 crore as compared to the Rs 24.81 crore in H1 FY14. Currently the company enjoys RoE at 19.40 per cent as of September 30, 2014. Going ahead, the return ratios are further expected to improve. TV Today continues to enjoy best operating metrics. Currently, TVTN is trading at a TTM PE ratio of 15.60 and on the basis of its price to book, it trades at 3.03x. It’s a debt-free company at the net debt level.

A Colourful Journey

BERGER PAINTS INDIA | BSE CODE: 509480 | VOLUME: 123843 | CMP: Rs.367 | FACE VALUE: Rs.2

Berger Paints India reported 15.4 per cent growth of revenue at Rs 2,181 crore against Rs 1,891 crore in H1 FY14. Its EBITDA margin expanded 65 bps on YoY to 11.8 per cent due to lower COGS and staff costs. At the bottom level, its PAT has grown by 11.4 per cent for H1 FY15 to Rs 124.49 crore as compared to Rs 111.77 crore in H1 FY14. The company will similarly grow in the second half of FY15 given the imminent revival in urban demand and industrial growth. The softening of global crude prices at around 20 per cent and TiO2 at around 13 per cent compared to last year can provide a significant margin boost. Recently the company has approved the sub-division of its equity shares’ FV of Rs 2 each into Re 1 per share.