When Should You Buy TV18 Broadcast Limited (NSE:TV18BRDCST)?

TV18 Broadcast Limited (NSE:TV18BRDCST), is not the largest company out there, but it saw a significant share price rise of over 20% in the past couple of months on the NSEI. As a small cap stock, hardly covered by any analysts, there is generally more of an opportunity for mispricing as there is less activity to push the stock closer to fair value. Is there still an opportunity here to buy? Let’s examine TV18 Broadcast’s valuation and outlook in more detail to determine if there’s still a bargain opportunity.

See our latest analysis for TV18 Broadcast

What's the opportunity in TV18 Broadcast?

Great news for investors – TV18 Broadcast is still trading at a fairly cheap price. My valuation model shows that the intrinsic value for the stock is ₹59.64, but it is currently trading at ₹43.20 on the share market, meaning that there is still an opportunity to buy now. What’s more interesting is that, TV18 Broadcast’s share price is theoretically quite stable, which could mean two things: firstly, it may take the share price a while to move to its intrinsic value, and secondly, there may be less chances to buy low in the future once it reaches that value. This is because the stock is less volatile than the wider market given its low beta.

Can we expect growth from TV18 Broadcast?

Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations. However, with a negative profit growth of -17% expected over the next couple of years, near-term growth certainly doesn’t appear to be a driver for a buy decision for TV18 Broadcast. This certainty tips the risk-return scale towards higher risk.

What this means for you:

Are you a shareholder? Although TV18BRDCST is currently undervalued, the negative outlook does bring on some uncertainty, which equates to higher risk. Consider whether you want to increase your portfolio exposure to TV18BRDCST, or whether diversifying into another stock may be a better move for your total risk and return.

Are you a potential investor? If you’ve been keeping an eye on TV18BRDCST for a while, but hesitant on making the leap, I recommend you research further into the stock. Given its current undervaluation, now is a great time to make a decision. But keep in mind the risks that come with negative growth prospects in the future.

Keep in mind, when it comes to analysing a stock it's worth noting the risks involved. You'd be interested to know, that we found 1 warning sign for TV18 Broadcast and you'll want to know about it.

If you are no longer interested in TV18 Broadcast, you can use our free platform to see our list of over 50 other stocks with a high growth potential.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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