media stocks rally

Shares of media and entertainment (M&E) companies surged in Wednesday’s intraday trade, with several stocks rallying up to 20%. Companies such as Saregama India, Tips Films, Mukta Arts, Pritish Nandy Communications, and Zee Entertainment Enterprises saw significant gains, supported by strong volumes in an otherwise range-bound market. Among the top performers, Saregama India hit a record high of Rs 622 per share, marking a 17% rally. The stock has soared 80% since April 2024, reflecting strong investor confidence in its evolving business model, which focuses on digital monetization through over-the-top (OTT) platforms and licensing income. Analysts expect the company’s profitability to remain robust due to increasing digital content consumption. Tips Films also hit the upper circuit, gaining 20% and closing at Rs 658. The company, known for producing and distributing films and web series, has projected an ambitious growth path. In its FY24 annual report, Tips Films emphasized its plan to produce 5 to 6 films per year, signaling strong prospects for content demand. Subhash Ghai’s Mukta Arts also saw a 20% rally, reaching Rs 97.09 after the company announced a new agreement with Zee Entertainment Enterprises for the satellite and media rights of 37 films, effective from 2027. Although the transaction value was not disclosed, the deal was reportedly 25% more lucrative than previous agreements. The media sector, as a whole, is experiencing strong growth, with the Indian M&E industry projected to reach Rs 23,800 crore by 2026. Analysts point to growing demand for Hindi films and digital content, alongside expanding revenue from tier-II and III cities and international markets. Shares of Pritish Nandy Communications also hit a 52-week high, locked at a 20% upper circuit at Rs 79.16, driven by the company’s successful ventures in film and digital series production. As per the FICCI-E&Y Report, the M&E sector is expected to grow by 10% annually, reaching Rs 3.08 trillion by 2026, with digital media leading the charge in content consumption. Source: Business Standard