This T-group media stock is locked in upper circuit for 111th straight day

Sri Adhikari Brothers Television Network stock was relisted in April 2024 post share capital reduction; the stock has since zoomed 1,539 per cent or 16.4-fold till date.

Shares of Sri Adhikari Brothers Television Network (SABTNL) were locked in the upper circuit for the 111th straight day, up 2 per cent at Rs 672.20, hitting a fresh 52-week high on the BSE in Wednesday's intra-day trade.

Post share capital reduction, the stock was relisted on the bourses on April 02, 2024 at Rs 41 per share. Since then, the stock has been hitting the maximum upper limit on daily basis and has zoomed a mammoth 1,539 per cent or 16.4-fold till date.

At present, SABTNL trades in the 'T' segment. T-group shares are securities that are put into the Trade-to-Trade segment by the BSE. These stocks are not allowed for intraday trading. The T2T stocks can only be delivery based i.e. the buyer has to take the delivery of these shares.

As on June 30, 2024, SABTNL had a total 25.37 million outstanding equity shares of which 59.52 per cent were held by the promoters. The remaining 40.48 per cent holdings were with bodies corporate (39.59 per cent), residential individual investors (0.63 per cent) and banks (0.23 per cent), shareholding pattern data shows.

The company operates in content production and distribution; it was admitted to the Corporate Insolvency Resolution Process (CIRP) by the order of the Hon'ble National Company Law Tribunal (NCLT), Mumbai Bench, dated December 20, 2019 (Insolvency Commencement Date), under the provisions of the Insolvency and Bankruptcy Code, 2016. In connection with the CIRP, the NCLT, by its order dated December 08, 2023, approved the Resolution Plan submitted by the Resolution Applicants.

SABTNL in its financial year 2023-24 annual report said that it has developed a comprehensive business revival plan, with positive financial outcomes expected over the next 6 to 8 quarters. The management views this phase as a rebirth and is committed to constructing sustainable business models that will drive long-term stakeholder value. The management's strategic vision for the upcoming year is optimistic, focusing on expanding digital media footprint and leveraging technological advancements to enhance production and distribution.

Growth will be driven by strategic partnerships and a diversified content portfolio to capture a wider audience and increase revenue streams. Despite potential regulatory changes, the management said the company remains dedicated to compliance and proactive engagement with authorities to ensure sustainable growth and operational excellence. The company is working on various opportunities to leverage its vast content library on digital mediums to take the revenue growth to a new high.

Key levels to track

Technically, the stock is seen trading firmly above its key short-term moving averages given the unabated run in the share price. The stock seems to be clinching on the higher-end of the Bollinger Bands on the weekly scale, which stands at Rs 655.

The stock is highly illiquid with trading volume of less than 50 shares on most trading days. In case of price correction, the near support for the stock stands at Rs 616 in the form of super trend line support. Below which, the 20-DMA (Daily Moving Average) stands at Rs 543 and the 50-DMA at Rs 418 - thus implying significant downside risk in case of a turnaround. CLICK HERE FOR THE CHART