Media and entertainment arm of Reliance jumps over 10% in a falling market; do you have it?

Shares of Network 18 Media & Investments Ltd were trading over 10% on Tuesday. Today, the stock has witnessed heavy buying activity from investors as a result the stock hit its weekly high. In the last six months, the stock has gained over 20%. However, on a year-to-date basis, the stock has remained flat.

The company has not made any significant announcements of late. Hence, the rally in the share price could be driven purely by the market forces.

Established in 1996, Network18 became a subsidiary of Reliance Industries Ltd (RIL) in 2014 when the Independent Media Trust, with RIL as its sole beneficiary, acquired a 73.15% stake in Network18, making it an integral part of the RIL conglomerate. Network18 now operates as the media and entertainment vertical within the RIL group.

For the quarter ended June 30, 2023, the company posted 141.73% jump in its consolidated revenue at Rs 3,238.94 crore compared to Rs 1,339.89 crore on YoY basis while sequentially zoomed over 118%. EBITDA rose by 42.71% YoY and stood at Rs 136.42 crore from Rs 95.59 crore, on a sequential basis, increased by 47.96%. Net profit stood at Rs 29.17 crore compared to Rs 39.46 crore, a YoY decline of 26.08%. The EBITDA margin fell by 292 bps YoY and 200 bps QoQ to 4.2%. Net profit margin fell by 204 bps YoY to 0.9%.

At 1 pm, the shares Network 18 Media & Investments were trading at Rs 69.8, up by 9.32% from its previous closing of Rs 63.85 on the BSE.

Today, the stock opened at Rs 64.04 and has touched a high and low of Rs 70.60 and Rs 63.50, respectively. The BSE group ‘A’ stock of face value Rs 10 has touched a 52-week high and low of Rs 78.40 and Rs 48.35, respectively.

Last one week high and low of the scrip stood at Rs 848.20 and Rs. 808.40, respectively. The current market cap of the company is Rs 7,200.91 crore.

The promoters holding in the company stood at 75% while Institutions and Non-Institutions held 6.21% and 18.80%, respectively.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet, and is subject to changes. Please consult an expert before making related decisions.