Adani Group –Buy- Angel Securities
Adani Group is in the foray to buy Deccan Chargers for $280–300 mn, which is approximately 3 times the price that Deccan Chargers Sporting Ventures paid for the IPL team in 2008.
Deccan Chargers is 80% owned by Deccan Chronicle, which publishes Deccan Chronicle and Financial Chronicle, with the balance 20% held by leading media agency GroupM. We believe that this is the good time to sell a team as next player auctions (for IPL to be played in 2011) may drive up the cost of all franchisees.
Moreover, we have been highlighting in all our updates that Deccan Chronicle will be looking at value unlocking for its IPL team at the opportune moment. However, it is not clear if Deccan Chronicle will sell Deccan Chargers completely or reduce stake to become a minority shareholder. We maintain a BUY rating on the stock with a target price of Rs193.
Popularity: 2% [?]
Category: Broker tips
Subscribe
If you enjoyed this article, subscribe to receive more just like it.
