After Pandemic and Slow down due to recession many people have not invested money market now people started invested money as situation become normal again. This trend will accelerate further. Apart from the necessities of life, there will be huge expenditure on luxury items
People have been worried about lockdown because of Pandemic Since two years No one knew when all this would end and what the situation would be like normal again. Because of this, even those who had money to use were saving money. Now Slowdown and lockdown worries due to pandemic are almost gone. I think as the economy changes, it will gradually become clearer.
People who are not spending money are more inclined to spend money on new things or new experiences. We believe that now apart from the necessities of life, luxury goods will start to cost a lot. Gradually we will see a big jump in sales of cars and consumer durables.
Another area that will make a big splash is media and entertainment. We can see a lot of value in this field now. Many media shares have seen significant declines and need to be looked at again. I find the broadcasters very attractive. Collect them in each fall. I think now the advertising rates will improve and this will lead to better revenue growth for these companies. Apart from television broadcasts, movie theaters, radio channels, digitization, animation companies are likely to have a very good voice.
Benchmarks closed with modest losses amid profit booking after a two-week rally. Overall market sentiment was negative due to the war and Pandemic in China.
Best Entertainment share this week is Zee Entertainment due to its merger with Sony. This company now provides investor the big return in coming years due to its potential for to transform growth.
Its single largest investor invesco put behind it position and it provide approval to merged entity for value attractive for Share holder.
After dominance of Amazon Prime Hotstar and Netflix this company has has provided growth potential in the OTT platform as it going very good. With Capital infusion from Sony worth 1.5 Billion USD this has give Zee entertainment opportunity to digital entertainment space giving it opportunity to grow.
One of big advantage for Zee entertainment is that it has wide presence in the different region in India with its genre and linguistic market.
As compared to Amazon Prime Netflix and hot star this Zee-Sony combined power will have good potential to grown in Future.
By looking at growth potential of this stock we recommend it with target of Rs 370 from current market price.
Financial Parameter at looks
Best Entertainment Share Company name is Zee entertainment is trading at CMP of 300 with Market Cap of Approx 29000 Cr. With 52 week high 367 and Low of 167.
Company Face value if 1 rs and Return of Equity is 8.11 %.
Company is debt free and paying health dividend of 18.985 this year. On the other hand the drawback of company is that it has less promoter holding compare to its peers. Promoter reduced their holding in last three year.
With reduced promoter holding now company is taken over by Invesco as main invester.
Entertainment Shares for Investment
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Beware of Commodities Stocks
Prices of most commodities declined sharply in the January-March 2022 quarter. Because of Russia-Ukraine war, this has been the best year since 1915 for commodities.
Commodities will test new high as compared to the quarter of December 2021. The input costs of major commodity companies have skyrocketed. This will lead to a sharp decline in their margins. We will gradually book in commodity shares.
Beware of companies with Weak balance sheets
Due to Many problem related to pandemic problems come to an end in the next quarter, the government will launch a massive round of capital investment to accelerate growth. Which in turn will lead India to a new earning growth?
The companies of the old economy will make a comeback. Shares of these sectors are likely to generate the best returns in today’s valuation. Cyclical shares that can show growth with an improvement in the balance sheet will give higher returns. Remove companies with weak balance sheets and poor corporate governance from your portfolio.
Don’t buy without seeing the valuation of the stock. Avoid Stock that are trading at a higher valuation if stocks have risen sharply and earnings have not risen accordingly. Buy Securities at Fair Value in Pharmatutical, NBFC, Banking, IT and Media Shares. Get ready for the next Bull Run.