Media shares melt down; Zee Telefilms scrip hits the bottom

MUMBAI: The fizz has consistently being going out of Indian media shares on the stock exchanges. And today saw them hitting the depths. Zee Telefilms touched its 19 month low when it crashed 13 per cent to Rs 162.50 but it recovered to close at Rs 165.65. Other media counters like Jain Studios (down 15.27 per cent to Rs 71), Pentamedia Graphics (down 12.64 per cent to Rs 163.50) and Crest Communications (down 11.71 per cent to Rs 90.50) exceeded the eight per cent lower limit of the circuit breaker. Tips Industries (Rs 150.80), Padmalaya Telefilms (Rs 71.05), Cinevista Communications (Rs 73), Balaji Telefilms (RS 210.10), Vision Techno (Rs 30.40) and Pritish Nandy Communications (Rs 36.85) also lost substantial ground. Others such as G V Films, Creative Eye, Sri Adhikari Brothers, TV 18 and Saregama India were subdued.


But the most worrisome of the losers is the once numero uno television broadcaster Zee Telefilms which reported high trading volumes of 15.10 million on the Bombay stock exchange (BSE) and hit its lowest for a long time. Zee's share price has been going down consistently for the past year. After a 1:10 split, the share peaked at Rs 1,610 in March 2000 during the market frenzy - an outstanding climb. The price has since been moving southwards.


The heavy erosion has been attributed to many factors right from the market perception of media stocks, to the rise of Star as a strong competitor which chewed away Zee's advertising revenues, along with other rivals such as Sony, DD, Sahara, Sab TV and other regional language channels. Adding to the negative outlook was the sheer bungling of its high profile riposte to Star TV's Kaun Banega Crorepati - Sawal Das Crore Ka.


The company hared into several directions announcing a spate of diversification and did not follow up on them. Finally, its third quarter results were much below expectations and the fourth quarter is showing little signs of brightening up.


The company is trying hard to get over the whirlpool current it has got caught in. It is implementing the restructuring recommendations made by consultant AT Kearney. But the results are not showing up on the bottomline as yet and are still some time away.


Punters are expecting a slight rise in its price in the short term but the prognosis is that it is going to sink further and stay there for quite a while. Looks like there is little succor for investors in Zee Telefilms who may end up losing their shirts in its downfall.

Latest Reads
US$ 4.5 bn expected from IPL rights; SC recommends accounts scrutiny

The Supreme Court on Friday froze all financial transactions between the BCCI and state cricket associations by directing the apex body not to disburse any funds till it resolves to abide by the Justice RM Lodha panel recommendations on reforms by 3 December . The top court ordered that none of...

Television TV Channels Sports
TVS Tyres is co-presenter for Asian Champions Trophy 2016

Continuing its strong connect with sports, TVS Tyres has associated with Asian Champions Trophy 2016 by becoming the co-presenter. The Asian Champions Trophy is one of the premier hockey tournaments, a much sought after annual international competition promising some great hockey action. This...

Television TV Channels Sports
Q2-17: Zee Learn declares maiden interim dividend

The board of directors of the Essel group’s education company Zee Learn Limited (ZLL) have declared a first time ever dividend of 5 percent per equity share of Re 1 each for the quarter ended 30 September 2016 (Q2-17, current quarter).

Television TV Channels Factual & Documentary
Whether BARC action can stop unethical practices?

Whether businesses and industries practice their art of selling fairly although they have 'Fair Practices' training during the academic courses, workshops and several ISO and other certifications? There seems to be the fear of the lawman, and not the law in India.

Television TV Channels Viewership
TV Superhighway: beIN, Yaddo, AfricaXP have joined us, says Magine CEO Ambuj Goyal

CANNES; Magine has secured partnerships with four of the industry’s most exciting sports, documentary and entertainment content providers. Partnerships with beIN, the international media group and owner of MIRAMAX; Yaddo, the new documentary streaming service headed up by former head of The BBC’s...

Television TV Channels Factual & Documentary
Colors emerges strong on strength of Naagin I & II

MUMBAI: One of the top rated shows Naagin Season 2 helped Colors reach a top-ranking position.

Television TV Channels GECs
Pakistan Broadcasters Association to oppose PEMRA Indian content ban

MUMBAI: The Pakistan Electronic Media Regulatory Authority (PEMRA) shocked both Pakistan and Indian broadcasters when it issued an order blanking out  all Indian content from Pakistan’s television channels on 19 October.

Television TV Channels GECs
Sony Pix to telecast 'Jurassic World' on 22 October

Sony Pix will take the viewers on a thrilling, adventurous journey with cloned dinosaurs in their Billion Dollar Premiere property. The channel plans to air Jurassic World on 22 October at 1 pm and 9 pm.

Television TV Channels English Entertainment
Sony AXN scripts deal with Pinewood; buys stake in SVOD service Hopster

Folks at Sony Pictures Television (SPT) are in a celebratory mood. Not only has it signed a six-series deal with Pinewood Television but has also acquired a minority stake in the London-based video subscription service for kids content - Hopster.

Television TV Channels English Entertainment

Latest News

Load More

Sign up for our Newsletter

subscribe for latest stories