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Our Bureau

Mumbai , Aug. 18

A PERCEIVED improvement in the business environment for the media and entertainment sector has been propping up investor interest in media stocks.

Rumours of a revival of the CAS or implementation of DTH being spurred on have all combined to sustain investor interest in stocks such as Zee Telefilms, Sony, Balaji Telefilms, Sri Adhikari Brothers and TV18.

"Going forward, the advertising environment appears to be improving. Besides, subscription revenues are also stabilising,'' said an analyst, who declined from being named.

Analysts maintain that the sharp turnaround could also be attributed to the fact that the counters have been subdued for a while, which make for attractive valuations at these price levels.

Additionally, specific developments at select media companies have also aided and abetted the feel good factor currently infusing the sector.

For instance, Balaji Telefilms, a favourite among entertainment stocks, has been on the radar of investors on market talk of a stake sale. The rumours became fact today when it announced 25.1 per cent stake sale to Asian Broadcasting FZ-LLC, an affiliate of Star Group Ltd in a preferential allotment.

Rumours have also been chasing the SAB TV counter, which has also been subject to sustained investor interest on the bourses in the recent past.

In the case of Television Eighteen (TV18), its financial performance during the first quarter has been above expectations. The company is expected to turn in a better performance during the second quarter mainly because the Union Budget announcement fell during this quarter. Budget is clearly one of its biggest revenue earning programme.

According to Mr Haresh Chawla, CEO, CNBC, in which TV18 has a 90 per cent stake, advertisement revenues have been growing at a healthy pace for the channel.

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