Media shares hits 52-week high, Zee at 12-year highs

Sun TV Network, New Delhi Television (NDTV), TV Today and Zee News are up more than 7% each on the BSE.

Shares of media and entertainment companies are on a roll with most of the stocks from the sector trading at their 52-week highs on the Bombay Stock Exchange (BSE) on expectation of higher subscription revenues due to digitisation.

Zee Entertainment Enterprises, Sun TV Network, New Delhi Television (NDTV), TV Today and Zee News, up more than 7% each are trading at their one-year high market price on the BSE.

The government has set the October 31 deadline for digitisation of the cable television network for the four metros of Delhi, Kolkata, Mumbai and Chennai. In the rest of the country, the process is to be completed by December 2014.

Zee Entertainment Enterprises has rallied 10% to Rs 202, its highest level since October 2000 on the BSE. The counter has seen huge trading activities with over four-fold surge in daily volumes.

Analyst at ICICI Securities in its report dated September 25 said that Zee Entertainment Enterprise will be a major beneficiary of the digitisation wave resulting in doubling of subscription revenues with complete digitisation.

Zee News, another Zee Group media company, has locked in upper circuit of 10% at Rs 14.72 on the BSE. NDTV has surged 10%, followed by TV Today Network (up 8%) and Sun TV Network (up 7%).