List of Best Media and Entertainment Stocks in India

You and your friends have decided to spend the weekend at home watching a movie on an OTT (Over The Top) platform while enjoying popcorn and a refreshing beverage. Subsequently, an advertisement appears, leaving you to wonder why it appears each time you try to view any online material. This advertising and the OTT content you watch form the basis of a certain sector.

In this blog, we’ll discuss companies involved in the media and entertainment sector.

Overview of the Media and Entertainment Industry in India

The media and entertainment sector includes all businesses producing or distributing motion pictures, music, television shows, advertisements, etc. Since there is a growing need for this kind of content every day, these businesses are adapting and implementing cutting-edge technologies to increase their productivity while offering their consumers interesting content. India is a tremendous market for these firms because it has a population of over 1.3 billion. The Indian media and entertainment industry was valued at INR 2.3 trillion in 2023 and is expected to reach INR 3.08 trillion by 2026 at a CAGR of 10%.

Top Media and Entertainment Stocks Based on Market Capitalization

The top media and entertainment stocks in 2024 are:

The media and entertainment stocks have been listed in descending order based on their market capitalization in the table below:

Best Media and Entertainment Stocks in India Based on Market Capitalization – An Overview

A brief overview of the best media and entertainment stocks in India are given below:

1. Sun TV Network Ltd.

Sun TV network is a part of the SUN Group and was established in 1993. The business runs multiple channels in seven different languages. It owns 69 FM radio stations, 3 daily newspapers, etc. It also owns OTT platforms like SUN NXT and two cricket franchises named Sunrisers Eastern Cape and Sunrisers Hyderabad. They were publicly listed on the Indian Stock Exchange in 2006. The company’s headquarters is situated in Chennai. 

2. PVR Inox Ltd.

PVR Inox was formed as a merger between PVR Cinemas and INOX Leisure in 2023. PVR Cinemas was founded in 1997 due to a joint venture between Priya Exhibitors Private Limited and Village Roadshow Limited of Australia. In 1997, the business opened its first cinema in Saket, New Delhi. In 2006, the company went public on the Indian Stock Exchange.  Inox Leisure was founded in 1999 and went public in 2006. PVR Inox has 1,747 screens in 114 cities across India and Sri Lanka.

3. Zee Entertainment Enterprises Ltd.

ZEEL was established in 1992 by Subhash Chandra. The company launched Zee TV in 1992, which was the first privately owned Indian channel. It experienced a sharp increase in its channel portfolio between 1995 and 2000. In 2006, the company demerged from Zee Telefilms Limited with the objective of focusing on the media and entertainment business. The company operates an OTT platform named ZEE5. The organization’s headquarters is in Mumbai. 

4. Saregama India Ltd.

Originally known as The Gramophone Company of India, the company was founded in 1901. The RPG Group (Sanjiv Goenka Group) later purchased it in 1985. The business changed its name to Saregama India Limited in 2000. At the moment, the company provides music via Saregama Carvaan. Other than music, Saregama owns the Yoodlee Films brand and produces films. Its main office is located in Kolkata. 

5. Tips Industries Ltd.

The business was founded in 1975 by Ramesh and Kumar Tarurani, the Tarurani brothers. At first, the industry sold tangible music formats like vinyl records and cassettes. With time, the company started acquiring music rights and established itself as a prominent player in the music industry. The company was listed on the Indian Stock Exchange in the year 1998. The company has started focusing on expanding its digital presence through online streaming and digital content distribution.  

Top Media and Entertainment Stocks Based on 1-Year Return

The media and entertainment stocks have been listed in descending order based on their 1-year returns in the table below:

Best Media and Entertainment Stocks in India Based on 1-Year Return – An Overview.

The best Media and Entertainment Stocks according to 1-Year return are given below, along with a brief overview:

Sri Adhikari Brothers Television Network Ltd.

Sri Adhikari Brothers Television Network Ltd. (SABTNL) was founded in 1985 by Adhikari Brothers. The company launched a channel named “SAB TV”, which became a huge success and was acquired by Sony Picture India Limited in 2005. The channel has won multiple awards for its comedy show “Taarak Mehta ka Ooltah Chashmah.” In order to keep up with the digital age, the company began distributing its content in digital format. Its headquarters are located in Mumbai.

TV Vision Ltd.

The company was incorporated in 2007 as a Sri Adhikari Brothers Television Network Limited subsidiary focusing on non-fictional entertainment channels. Later, in 2010, the company established a music channel called Masti, representing a turning point for the company. The corporation is pushing into regional music channels like Dabangg for the Bhojpuri language audience and Maiboli for the Marathi population. The company became publicly listed on the stock exchange in 2015 after a demerger from SABTNL. The company’s headquarters is in Mumbai. 

Digi Content Ltd.

The company aimed to concentrate on digital content, and it was founded in 2017 as a subsidiary of HT Media Limited. In 2018, the firm began producing digital content for all of HT Media Limited’s websites, including Livemint and Hindustan Times. In 2019, the company went public on the Indian stock exchanges. The company’s main office is located in New Delhi. 

Next Mediaworks Ltd.

The business was first established as Mid-Day Publications Private Limited in 1981. The organization was once well-known for providing Mumbai residents with afternoon newspapers. The company became famous in 2005 after launching Radio One, a radio channel. In 2011, the business changed its name to Next Mediaworks Limited. The company’s headquarters is located in Mumbai. 

An overview of the remaining companies is given above.

Key Performance Indicators (KPIs)

Benefits of Investing in Media and Entertainment Stocks

Media and entertainment stocks can be a valuable addition to your portfolio for the following reasons:

• Diversification in Portfolio – Investing in the media and entertainment industry diversifies your portfolio because these businesses don’t experience the negative effects of business cycles. 
• Exposure to Growing Industry – The industry is growing because of rapid advancements in internet technology and the increased demand for digital content, which will result in an increase in revenue and profits for companies involved in the media and entertainment sector.

Factors to be Considered Before Investing in Media and Entertainment Stocks

There are multiple factors one should consider before investing in media and entertainment stocks:

• Company’s Performance – Prior to investing in a media and entertainment sector stock, it is important to assess the company’s financial performance, including its revenue, profit margins, assets, etc. 
• Audience Preference – Consumer tastes constantly change, and the business that responds to these changes quickly become market leaders. 
• Content Quality – Content created by these companies needs to be examined well because it may be tailored to a certain audience, which could have long-term effects on their expansion.  

Future of Media and Entertainment Sector in India

Given that it is one of the industries with the quickest growth rates and makes a substantial contribution to the nation’s GDP, making this sector. People’s need for digital material and the internet will grow along with their disposable cash to compensate for the lack of OTT applications that all corporations offer their customers. By the end of 2025, the Indian media and entertainment sector is projected to grow from INR 2.3 trillion in 2023 to INR 3 trillion by 2026.  

Conclusion

To sum up, the media and entertainment sector is expected to grow significantly in the near future. Investing in this sector can offer you a fantastic opportunity to generate investment returns. These businesses will benefit from the global shift to digitization, but since there is considerable risk involved in this sector, you should speak with an investing professional before making any decisions. 

Frequently Asked Questions (FAQs)