Which Are the Best Media and Entertainment Stocks in India?
Media and Entertainment Companies in India
The media industry has been growing tremendously in the last few years and this is the reason this sector has become the highest-income grossing sector in India. Especially after the covid outbreak, the media industry has seen rapid growth. When people were forced to sit at their homes, they spent their time watching Netflix and Amazon prime which resulted in the growth of the media and entertainment sector. In this article, we are going to learn about media stocks, what are the listed media companies in India, top media stocks India, and things to consider while investing in top media shares.
What Are Media Stocks?
The media stocks belong to various segments such as print, television, entertainment, music, advertising, gaming, animation, radio, and films. Media stocks are listed in leading exchanges of India such as NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). However, you should be aware that the price may vary slightly in both exchanges. You can find the list of media stocks in India in the NIFTY media index.
Best Media Stocks in India
|Company’s name||Market cap||Dividend yield (%)||ROCE (%)|
|Sun TV network||20868.81||2.57||27.46|
|Dish TV India||3093.37||0.00||25.45|
|Prime Focus Ltd||2221.08||0.00||11.23|
(Data as of 21st October 2022)
Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns
Top Media Stocks in India: How to Invest in Them?
- The first step to invest in listed media companies in India by opening a Demat account and trading account. To open a Demat account, you have to provide all the required documents such as identity proof, address proof, bank details, PAN card details, and income proof of the last 6 months to complete the KYC process. Once your Demat account gets activated, you are all set to place buy and sell orders.
- If you want to invest directly in media stocks, track the price of media stocks that you want to invest in. Also, check their fundamentals and financials.
- Another way you can invest in media stocks is by investing in media and entertainment stocks-focused funds.
- Develop your investment strategy which should align with your risk appetite and investment goals.
Best Media Stocks in India: Things to Remember Before Investing
- Entertainment stocks have a unique risk due to their difference in fundamentals. So, make sure to check the fundamental metrics of the company such as market capitalization, debt-to-equity ratio, return on equity, return on capital employed, and earnings per share along with balance sheet and cash flow before investing in any media share. Checking the fundamentals of the company is essential if you want to invest in the stock for the long term.
- Do not solely depend on one parameter to make your decision.
- Do not invest blindly in media share lists by following any tip from your friends or a relationship manager. Make sure to do thorough research and analysis about the stocks to make informed decisions.
- If you are trading in ott shares in India for the short term, you should use technical charts, indicators, or tools to find out the right time to make an entry and exit in the stock. Also, always use stop loss while trading in media shares.
- Remove the stocks from your portfolio that are not performing well because there is no assurance that the particular stock will rise in the future. So, make sure to use the right risk management strategy to reduce the losses.
- Do not allocate all your money to a single sector. Instead, diversify your portfolio across different sectors to minimize the losses. Let's say you have allocated a major chunk of money in one sector and due to some reason that sector will crash tomorrow. You will face a major loss. This is the reason why you should always diversify your portfolio.
- Keep track of the news to check if there is any major change in the media and entertainment sector that will affect the price of their stocks.
To conclude, all media shares in India have the potential to give you decent returns in the near term because of growing media platforms. However, you need to keep in mind that advertising stocks in India are associated with high risk because of their price movements. So, analyze your investment objective, the amount of risk you can bear, and the timeline of your investments before investing in entertainment stocks or any securities.
This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.
What is a nifty media index?
The nifty media index comprises 15 media and entertainment sector stocks that are listed on NSE.
Which media stocks have the highest weightage in the nifty media index?
ZEEL (31.17%), PVR Ltd (18.87%), SUN TV (11.85%), Saregama (6.91%), and TV18BRDCST (6.46%) have the highest weightage in the nifty media index.
What are the best entertainment stocks in the world?
The best entertainment stocks in the world are:
- The Walt Disney Company
- Electronic Arts
- Tencent holdings
- Take two interactive
What are the top media companies by market capitalization in BSE?
Praveg Commu, DJ Mediaprint, and Brandbucket Med are the top media companies by market capitalization in BSE.