Despite the geopolitical turmoil, some stocks have managed to deliver excellent returns to their shareholders.
Among the very few, Quint Digital Media is one such stock that has gained 27% over the past two months. Shares of the media firm alone have gained 21% in the last five trading sessions.
However, due to weak market sentiment, the shares of this smallcap media company hit a lower circuit of 10 per cent before recovery on BSE yesterday.
Quint Digital Media is India’s only new age digital media conglomerate listed on the Indian Stock Exchange.
What’s driving the rally?
Last week, industrialist Gautam Adani made headlines when he announced his foray into news business news with Raghav Behl, the founder of Network18. Raghav Bahl-led digital business news platform, Quint Digital Media will now have Adani Group as an investor.
Digital Media Group has entered into a binding term sheet agreement with Adani Group on 1st March 2022. As part of the term sheet, Adani Group will acquire a minority stake in Quintillion Business Media (QBM).
The proposed transaction with the Adani Group is only for QBM, the digital business news platform and not in respect of other digital media or media technology assets owned by Quint Digital such as The Quint, Quintip Technologies, The NewsMinute and Youthkiawas.
The deal is subject to standard due diligence and execution of certain documents. So far, Quint Digital has signed an MoU with Adani Properties for sale of minority stake in QBM, controlled by Quintillion Media (Materials subsidiary).
With this deal, Adani is set to become the second major player in the media industry after Mukesh Ambani-led Network18.
Management opinion on acquisition
Adani Media Ventures CEO Sanjay Puglia said the company intends to lead the way for new age media across various platforms.
He further added,
The adoption of technology and India’s increased ability to consume information has dramatically changed the way the media is expected to disseminate authentic information.
While Anil Uniyal, CEO, Quintillion Business Media, said,
Given the proven performance record of the Adani Group, their support to meet QBM’s ambitions will lay the foundation for business growth and accelerate the scale of QBM’s high-quality content for the Indian audience.
India has the world’s largest population of youth, which is driving the consumption of digital media. The growing demand for on-demand digital news services is driven by improved 3G and 4G internet coverage and rapidly declining data costs.
In India, online news consumption is booming at the same time as traditional media consumption. Legacy media businesses are also popular in the online arena. This is a good sign for the company.
What happened to Bloomberg Media and Quintillion Media?
QBM is a business and financial news company and also operates the leading media website – Bloomberg|Quint.
Interestingly, Bloomberg Media and The Quint announced the restructuring of their partnership in India on 1 March 2022. The two companies have terminated their equity joint venture in favor of a new content license agreement.
Bloomberg and Quintillion Media will no longer collaborate on Content, but will continue to distribute Bloomberg Content in India through a license agreement.
Back in April 2016, The Quint and Bloomberg had formed a 74:26 joint venture in India and had plans to launch a business news channel and portal as well.
While the portal was launched in 2017, the company could not get a license to run TV channels from the Ministry of Information and Broadcasting (MIB).
A look at the company’s financial position…
For the December 2022 quarter, the company’s net profit grew by 516.7% against 11.1 meters 1.8m during the previous quarter a year ago. Its operating revenue rose 48.5% 92.5m as compared to December 2021 quarter.
Quint Digital had a nominal debt of 2m on 31st March 2021.
Main parameter
| , M) |
December-21 |
December-20 |
March-21 |
March-20 |
| gross sales |
93 |
62 |
211 |
140 |
| Expenditure |
52 |
45 |
, |
, |
| profit before tax |
16 |
12 |
-19 |
-276 |
| profit after tax |
1 1 |
2 |
-19 |
-275 |
| net profit margin |
12% |
2.90% |
-8.8% |
-196% |
Source: Equitymaster
Who is Raghav Behl?
Raghav Behl is an Indian businessman, a serial entrepreneur and an investor, best known for his past ownership of several television channels including TV18 India.
He was the founder, controlling shareholder and managing director of Network18 Group, a media conglomerate he started in 1993 and has grown into one of the largest collections of media assets in India.
After departing from Network 18 Group, Bahl co-founded Quintillion Media Pvt Ltd with his wife Ritu Kapoor. This media conglomerate controls Thequint.com.
Apart from founding and expanding Network18 and The Quint, Mr. Raghav has also seeded moneycontrol.com, Bookmyshow.com, firstpost.com, yatra.com, etc.
In October 2018, Bahl’s home in Quintillion Media, Noida and his Delhi residence was raided by Income Tax officials. The Enforcement Directorate (ED) had registered a money laundering case against the media baron in 2019 for allegedly laundering money to buy an undisclosed foreign asset.
However, in December 2021, the Supreme Court granted interim protection to the media entrepreneur in a money laundering case.
How Quint Digital Media’s stock has performed on the stock markets…
The Quint Digital Media shares started the day 505.1 on BSE yesterday.
Its share price closed at 480.3 (down 10%) on BSE.
At its current price, it is trading at a P/E of 271.94.
The stock touched its 52-week high of 638 and 52-week low 281 on 4 March 2022 and 5 March 2021 respectively.
In the last 30 days, the share price of Quint Digital Media has gained 15.1%. The company’s share price has risen 62.8% in the last one year.
see full image
About Quint Digital Media
Quint Digital Media (earlier known as Gaurav Maccantiles) operates as a digital media company. Gaurav Mactantiles was earlier engaged in Shipbreaking, Trading and Investment.
Now, The Quint provides news across platforms across various categories like politics, business, opinion, entertainment matters, sports, technology, women’s affairs, health and fitness, blogs, hot wire, photos, videos and international news.
Quint Digital Media serves customers in India.
For more information about the company, you can visit here Factsheet of The Quint Digital Media And quarterly results on our website.
Disclaimer: This article is for informational purposes only. This is not a stock recommendation and should not be treated as such.
This article is syndicated from equitymaster.com
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