KOLKATA: The Covid2019 pandemic hit the media and entertainment industry due to pressure on advertising revenue, uncertainty in subscription and closure of multiplexes. As the lockdown eases, operations have started normalising leading to a recovery in the business. On Tuesday, Nifty media index advanced 2.27 per cent while companies like Network18, Inox Leisure, Dish TV, Zee Media and Jagran Prakashan saw four to five per cent gains.

Network18 was the highest gainer in the Nifty media index, advancing 4.99 per cent. Moreover, its stock has been gaining for eight days consecutively as of Tuesday.  It touched a new 52-week high hitting Rs 47.3 during the day while it ended the day at Rs 47.30. TV18 Broadcast stock has been gaining for the last three days as of Tuesday and has risen 10.45 per cent returns in the period. Its shares rallied 3.79 to end at Rs 39.60 , after touching a new 52-week of Rs 40.3. Zee Media Corporation Ltd (ZMCL) also gained 4.48 per cent on Tuesday. While Zee Entertainment Enterprises Ltd (ZEEL)’s gain was comparatively lower, both ZEEL and ZMCL have been gaining for the last two days as of Tuesday. 

Figure: Nifty Media Index on Tuesday 

Analysts are also bullish on the rebound of broadcasters’ stocks on the back of higher advertising revenue. “Now that advertising is coming back after unlock, there will be some rebound on the expectations of advertisement revenues. You may see media stocks getting better but not all stocks, particularly multiplexes, because malls have not opened up. But if you look at pure broadcasters, the valuation may go up. Depending on the how soon the recovery happens, there will be an upside. The cable operators, who are facing disruption in payment, will see things easing down," says SBICap Securities institutional equity research head Rajiv Sharma.

“Print media will take a lot of time to rebound because advertising revenue has taken a hit and people are not taking newspapers. Broadcast will be the first segment to recover. Once fresh content comes in, there will be bigger recovery in advertising revenue. In the case of print and radio, this is more of relief rally. Structurally, radio and print are going to suffer even after Covid2019,” Elara Capital VP – research analyst (Media) Karan Taurani says.

Among DTH players, Dish TV stock has been gaining for the last 17 days and has risen 125.47 per cent returns in the period. DEN Networks has gained 9.69 per cent on Tuesday. Another major multi system operators, Hathway Cable and Datacom has also gained 7.67 per cent.