This Rekha Jhunjhunwala-owned stock has zoomed 65% in last one month

Shares of TV18 Broadcast hit an over 10-year high of Rs 77 on rallying 11 per cent on the BSE in Thursday’s intra-day trade on the back of heavy volumes. The stock of the Reliance Group company was trading at its highest level since July 2011.

In the past one month, the stock has zoomed 65 per cent after the company reported a strong operating performance for October-December 2021 quarter (Q3FY22). In comparison, the S&P BSE Sensex was down 2.3 per cent during the period.

As on December 31, 2021, ace investor Rakesh Jhunjhunwala’s wife Rekha Rakesh Jhunjhunwala held 25 million or 1.46 per cent stake in the company, which is engaged in the business of broadcasting of general and business news television channels.

At 01:50 pm, the stock was up 8 per cent at Rs 75.10, as compared to a 0.98 per cent rise in the S&P BSE Sensex. A combined 40.6 million equity shares had changed hands on the NSE and BSE.

In Q3FY22, the company reported its highest-ever consolidated operating earnings before interest, taxes, depreciation, and amortization (ebitda) at Rs 355 crore with margins of 22.7 per cent. In Q3FY21, operating ebitda and margin stood at Rs 321 crore and 23.6 per cent, respectively.

Strong revenue growth momentum continued during the quarter as the company reported its highest-ever quarterly revenue of Rs 1,567 crore, up 15.1 per cent year-on-year (YoY), despite the pandemic induced headwinds faced by the movie business, TV18 Broadcast said in a statement.

Profit before tax rose 24 per cent YoY to Rs 344 crore driven by growth in revenues, controlled opex and lower finance costs. However, consolidated profit after tax (PAT) de-grew 17.5 per cent YoY to Rs 311 crore from Rs 377 crore in a year ago quarter.

TV industry saw an all-time high advertising volumes in the third quarter driven by strong consumer demand, increased spending by existing brands for a higher share of voice and new advertisers using the medium to widen their reach.

Buoyed by the advertising demand and a robust viewership share, both entertainment and news businesses delivered a strong growth in advertising revenues with YTD revenues surpassing full-year FY21 level, the company said.