Best Media Stocks in India

18 April 2024
9 min read
Best Media Stocks in India
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(The stocks mentioned in the blog are as per Analyst Ratings and Market Capitalization)

Nowadays, audiences of all ages and backgrounds consume media through different channels, including television, movies, animation, radio, music, VFX, gaming, outdoor advertising, digital ads, film entertainment, live events and print.

With higher incomes and changing lifestyles, there is a greater need for media and entertainment services in India. Furthermore, the Government of India has played a supportive role in fostering industry growth through various initiatives. 

Media & Entertainment Industry in India - A Brief Overview

The Indian Media and Entertainment (M&E) industry is thriving and holds immense potential for the economy. It has been making remarkable progress due to various factors, including the widespread availability of fast and affordable internet. Unlike other markets, India's M&E industry stands out for its vast scale and rising Average Revenue Per User (ARPU), setting it apart as a global leader in digital adoption. 

The Indian Government has implemented various initiatives to boost the media sector, including digitising cable distribution, increasing the FDI limit for cable and DTH platforms, and granting industry status to the film industry. The government has also established the Film Facilitation Office to streamline filming permissions and merged Film Media Units for better coordination. Additionally, plans are underway to develop an AVGC Centre for Excellence in collaboration with IIT Bombay.

India has emerged as a key player in the VFX sector, gaining recognition as a preferred content creator worldwide. Despite global challenges, the Indian M&E industry remains resilient and is positioned for robust growth, driven by surging consumer demand and improving advertising revenues. Moreover, experts anticipate that India’s Media & Entertainment industry will achieve a $100 billion valuation by 2030.

Best Media & Entertainment Stocks in India 2024 as per Analyst Ratings

The following table showcases the top media and entertainment stocks in India as per analyst ratings provided by the I/B/E/S databases. We have picked these ratings as a criterion to list down the stocks as stock analysts rate a stock after an in-depth market research and company performance analysis.

Now, let’s dive into the list of media stocks:

S.No.

Media & Entertainment Stocks in India (as per analyst ratings)

BUY Analyst Rating (in %)

1.

PVR INOX

85

2.

Zee Entertainment Enterprises

74

3.

Sun TV Network

69

*Our stock selection criteria for top stocks based on analyst ratings are mentioned at the bottom of this blog.

Top Media & Entertainment Stocks in India in 2024 as per Market Capitalisation

Here is a table mentioning the best media and entertainment stocks in India sorted as per market capitalisation:

S.No.

Media & Entertainment Stocks in India (as per market capitalisation)

1.

Sun TV Network

2.

Zee Entertainment Enterprises

3.

PVR INOX

4.

Network18 Media & Investments

5.

TV18 Broadcast

*Our stock selection criteria for top stocks based on Market Capitalisation are mentioned at the bottom of this blog.

Overview of Best Media & Entertainment Stocks in India as per Analyst Ratings and  Market Capitalisation

Here is an overview of the media stocks in India in 2024 in India based on analyst ratings and market capitalisation, as mentioned earlier:

1) PVR INOX

Headquartered in Gurugram, PVR INOX Limited is a diverse media company involved in the film entertainment sector. It operates in the film exhibition, distribution and production sectors. Additionally, PVR provides services such as operating multiplexes, in-cinema advertising, selling movie tickets and other related activities.

Most of PVR INOX Limited's revenue comes from a diverse range of sources, mainly from box office and non-box office activities. These include sales of food and beverages, income from advertisements, convenience fees and revenue from movie distribution, among other sources. The various brands of PVR INOX are Directors Cut, Playhouse, Insignia, ScreenX and more.

2) Zee Entertainment Enterprises

Incorporated in 1982, Zee Entertainment Enterprises Limited is a media and entertainment company that provides broadcasting services. The company operates primarily through its content and broadcasting segment. ZEE boasts an extensive library with over 260,000 hours of television content and holds rights to approximately 4,800 movie titles. 

Its brands include Zee Cinema, Zee TV, Zee Classic, Zee Action, Zee Cafe, Zee Studio, ETC Bollywood, Zee Anmol, Zee Q, Zee Salaam, Zing and Zindagi.

In addition, the company offers a variety of regional language channels such as Zee Talkies, Zee Marathi, Zee Kannada, Zee Tamil, Zee Bangla, Zee Bangla Cinema, Zee Telugu and Sarthak TV.

3) Sun TV Network

Founded in 1985, Sun TV Network Limited runs satellite television channels in 6 languages: Tamil, Kannada, Malayalam, Telugu, Bangla and Marathi. It also operates 69 FM radio stations across India.

Sun TV also owns the digital over-the-top (OTT) platform Sun NXT, the SunRisers Eastern Cape of Cricket South Africa's T20 League and the SunRisers Hyderabad Cricket Franchise of the Indian Premier League. 

Its revenue streams include advertising, broadcasting fees, international subscriptions, other subscriptions, movie distribution, and content trading. Sun TV Network channels are accessible in 27 countries, spanning the U.S.A, Canada, Europe, Singapore, Malaysia, Sri Lanka, South Africa, Australia and New Zealand.

4) Network18 Media & Investments

Network18 Media & Investments Limited, also known as the Network18 Group, is a highly diversified media and entertainment conglomerate in India. It has interests in various sectors, including television, filmed entertainment, digital content, print, e-commerce, and related businesses.

Network18 operates in publishing, digital and mobile content, general news, business news, and entertainment domains through its channels and platforms. 

Additionally, it engages in licensing and merchandising, live event organisation, over-the-top and digital content delivery and marketing partnerships. Moreover, Network18 is involved in the production and distribution of motion pictures. Notable news brands under the company include News18 India, CNBC-TV18, and CNN News18.

The content business comprises online platforms such as News18.com, Moneycontrol, Firstpost, and Voot, covering news, opinions, and entertainment.

5) TV18 Broadcast

Founded in 2005, TV18 Broadcast Limited is a popular media company. It is one of the leading media houses that is involved in broadcasting general and business news.

From distribution to motion pictures to digital, TV18 is engaged in a wide range of media services. Its popular channels include CNBC-TV18, CNBCAwaaz, CNN-News18, CNBCTV18.com, News18 India and many regional news channels.

On the entertainment front, its leading broadcast channels include Colors, Colors Rishtey, Colors Cineplex, Nick, Sonic, MTV, MTV Beats, Comedy Central, Colors Infinity, and many more.

Factors to Consider Before Investing in Media & Entertainment Stocks in India

Before buying top media stocks, consider the factors mentioned below to make an informed investment decision:

  • Technological Advancement

Rapid advancements in streaming and gaming technologies play a crucial role in shaping the media and entertainment sector. These developments, along with evolving communication models, directly impact audience preferences and stock performance.

  • Demands of Audience 

The increasing demand for on-demand and personalised content influences the performance of media and entertainment stocks. Companies that cater to these evolving preferences tend to fare better in the market.

  • Financial Health

Evaluate the overall financial soundness and performance of the media and entertainment companies you are considering for investing. Look at factors such as revenue growth, profit margins, debt levels and cash flow. A strong financial performance indicates a stable and well-managed company.

  • Advertising Trends

Trends in advertising expenditure and consumer behaviour play a vital role in shaping the media and entertainment sectors. Companies with effective advertising strategies are better positioned to capitalise on market opportunities.

  • Economic Conditions

Consider economic factors like GDP growth, consumer spending, and market sentiment. These elements play a significant role in influencing the performance of media and entertainment stocks.

Should You Invest in Media & Entertainment Stocks?

While the sector holds promising growth potential, it also faces its fair share of challenges. 

Piracy remains a major concern, with inadequate laws to prevent it. Transparency issues, especially in advertising, can lead to tax complications. Moreover, threats to media channels and personnel are on the rise, requiring stricter laws to protect freedom of speech. 

Additionally, there is a lack of gender representation in the industry, leading to exploitation and a need for structured organisational norms. Furthermore, compliance with complex and evolving laws poses another challenge, requiring a streamlined approach for better industry cohesion. Therefore, it is essential to assess these factors thoroughly before buying the media sector stocks.

The Bottom Line 

Investing in media stocks can be a lucrative choice, given they demonstrate steady growth over time. People want more content, and new technology helps media companies deliver it.

With the world changing fast, these media stocks may seem lucrative investments. However, before investing, research each company carefully and consider seeking advice from a financial expert to ensure it aligns with your investment goals and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Analyst Rating

Investors must carefully read through the following information on stock selection criteria while running through the stocks based on analyst ratings-

These stocks have been shortlisted as per Analyst ratings provided by the I/B/E/S (The Institutional Broker’s Estimate System) database, further aggregated by Refinitiv. Ratings are determined by analysts' forecasts of company performance, taking into account metrics like earnings per share, sales, and net income. These ratings should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).  

Before investing, investors must conduct independent research and not solely rely on the information provided here. This will allow investors to make appropriate investment decisions based on their financial goals, investment objectives and risk tolerance.

*Stock Selection Criteria for Top Stocks Based on Market Capitalisation

These stocks are chosen based on their market capitalization, which represents the total value of a company's outstanding shares. The selection is arranged in descending order, placing the largest companies first and the smaller ones later. This helps prioritize stocks based on their market size. 

It is important to note that market capitalization in no way guarantees a company’s performance or the returns from its stocks. However, it can be used as a criterion for shortlisting companies from within a sector. Investors should recognize that other factors, such as financial health, management efficiency, and market trends, play crucial roles in determining the actual success of an investment. 

This stock selection should not be construed as investment advice/recommendations/offer/solicitation of an offer to buy/sell any securities by Groww Invest Tech Pvt. Ltd. (formerly known as Nextbillion Technology Pvt. Ltd.).

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Aakash Baid

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Groww Invest Tech Pvt. Ltd. (Formerly known as Nextbillion Technology Pvt. Ltd) Ltd. do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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