Media stocks languish as weak recovery, tariff concerns remain

While valuations are at a steep discount, the underperformance is likely to continue

The media sector has been the worst performer among sectoral indices shedding over 11 per cent since the start of August as compared to the benchmarks which have gained 10.9 per cent during this period. The sharp underperformance has largely been due to the broadcasters, Zee Entertainment and Sun TV Network which have shed in the 11-15 per cent range during this period. Even over a one year period, the sector lags behind all sectoral indices with the underperformance at over 20 per cent. 

Slow recovery of advertisement revenues, uncertainty on subscription revenues due to the New Tariff Order 2.0