HINDUSTAN MEDIA VENTURE ( HMVL) – is the company publishing famous Hindi daily “HINDUSTAN” which is currently standing at the second position(all India basis) in all Hindi dailies, next to Dainik Jagran ( As per IRS Survey 2013) and the fastest growing Hindi Daily .Company also publishing two monthlies – Kadambini (Cultural and Literacy magazine) and Nandan (exclusively for children) and running Hindi news website http://www.livehindustan.com. Since the business is simple and easy to understand, I am not explaining much about that side. At present “Hindustan” is publishing from 19 locations and at the top position in Bihar and Jharkand . As in the case of any daily , company’s income is coming through subscription charges and advertisement income. Almost 2/3 part of income is coming from advertisement and the rest from subscription charges. In developed countries print media industry is showing negative growth trend due to increasing popularity of Internet and mobile. But in India , print media is growing at a healthy pace and considering the huge population of currently illiterate and non techno savvy people, growth is expected to continue for many more years. Government’s sincere efforts for illiteracy eradication programmes will positively impact the growth of print media in India in coming years.In order to capitalize any shift of trend in future ,company already entered in web based business through its news website http://www.livehindustan.com
Promoters are holding about 75 % stake in HMVL and another 15 % by mutual funds and big investors including Azim Premji of Wipro.Company’s balance sheet is strong with negligible debt and robust operating cash flow . In addition to this, about Rs.400 Cr available as Cash or cash equivalents with the company . Company can use this huge amount for growth either through organic or inorganic expansion or reward its stake holders through share buy back ..etc in future . Considering the strong growth in circulation, possibility of increase in advertisement charges going forward , stability in raw material cost and above all a very strong balance sheet ,HMVL remaining as one of the preferred pick from media space and I believe there is lot of value in it and suitable even for law risk investors who are ready to show patience for steady growth.
Hindustan Media Venture ( HMVL) is listed in both exchanges and trading around Rs.187.
DISCLOSURE: IT IS SAFE TO ASSUME THAT I HAVE VESTED INTEREST IN HT MEDIA VENTURE LTD(HMVL).
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