But I don't agree with this Recommendation as this stock is not looking good on charts atpresent. and if you calculate the risk to reward ratio then also it's not looking attractive.
Sharekhan report on NDTV:
A step towards creating a media and entertainment conglomerate
New Delhi Television (NDTV) has received a major push towards implementing its ambitious plans of diversifying its broadcast offerings by entering the general entertainment and lifestyle space. Last week the news broadcaster received the approval of the Foreign Investment Promotion Board to raise foreign investment of Rs 585 crore (~USD130 million) for its proposed channels through its UK-based subsidiary NDTV Network Plc. Taking a step forward, it has also entered into a definitive agreement with Com Ventures V.I.L.P for infusing USD 20 million in NDTV Network Plc. We believe the company will expedite the fund raising process by roping in strategic/ financial investors or go for a listing on the Alternative Investment Market (commonly known as AIM).
Seeding growth
After creating a niche in the news genre and proving its capabilities in establishing three leading news channels, the company's management plans to broaden NDTV’s presence in the non-news space. We believe that, with a highly experienced management and a pool of talent nurtured over a period, NDTV is well poised to enter the large but highly competitive Indian general entertainment space. In addition to this, it also plans to launch niche lifestyle channels dedicated to travel, food, fashion, shopping and health & wellness along with "Metronations" (city-centric channels) to garner local advertising. The new structure would further enable it to rope in strategic investors for each segment of the business and enable it to focus on the varying needs of each business. Apart from broadcasting we see value in its media outsourcing joint venture with Genpact, Internet portal (www.ndtv.com) and consulting businesses.
Valuation and view
At the current market price of Rs304 the stock trades at 44.3x its FY2008E earnings. We maintain our Buy recommendation on the stock with a price target of Rs 348.