The Hindu Business Line : Media Video jumps on re-rating hopes

MEDIA Video Ltd scaled its year-high price of Rs 40 on the BSE, on Tuesday, on huge buying by a section of traders and investors. The stock closed at Rs 38.45, up 14.43 per cent and recorded a total traded quantity of 3.62 lakh shares, against the daily average volume of 73,061 shares in the past two weeks on the exchange. In the last one week, the stock moved by 17.40 per cent.

According to analysts, the stock is seeing a re-rating by a set of investors on its improvement of fundamentals as also growth plans. The consumer electronics company launched CTVs in April last. It is also entering the GSM mobile phone handset business in a big way with a manufacturing tie-up with a foreign brand.

The company has also chalked out plans for a real estate business with an investment of Rs 125 crore.

Mr Prem Rishi, Chairman and Managing Director of the company, told Business Line that the company's margins being stable, the bottomline growth should be substantial this fiscal.

According to industry sources, the company products under the overseas brand would hit the market in October. Around that time, the company is also expected to launch its own handset brand in the domestic market too.

For the real estate business, the company has identified a 175-acre land, in the national capital region for development of a country home/farm house project.

"We are making a 1:1 rights issue for part funding the real estate business, aiming to raise around Rs 45 crore and a borrowing of around Rs 80 crore," Mr Rishi added.

The land acquisition is expected to be completed by November end. However, another 325 acres of land would also acquired to make the project a 500-acre one in phases.

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