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Published On: 30th April, 2016

International Journal of Informative & Futuristic Research ISSN: 2347-1697

Volume 3 Issue 8 April 2016 Original Paper

Abstract

The Indian media and entertainment (M&E) industry is one of the fastest growing industries in the country. Its various segments—film, television, advertising, prints media, music and digital among others—has witnessed tremendous growth in the last few years. The Indian media & Entertainment sector is expected to reach US$ 100 billion by 2025, from its estimated size of US$ 17.85 billion in 2015, due to its large capacity to consume new products and businesses.

1. INRODUCTION

The Indian Media and Entertainment (M&E) industry is a sunrise sector for the economy

and is making high growth strides. Proving its resilience to the world, the Indian M&E

industry is on the cusp of a strong phase of growth, backed by rising consumer demand

and improving advertising revenues. The industry has been largely driven by increasing

digitization and higher internet usage over the last decade. Internet has almost become a

mainstream media for entertainment for most of the people.

Market Dynamics

The Indian media & Entertainment sector is expected to reach US$ 100 billion by 2025,

from its estimated size of US$ 17.85 billion in 2015, due to its large capacity to consume

new products and businesses. In 2015, the overall Media and Entertainment industry grew

Fundamental Analysis Of Media And

Entertainment Industry In India Paper ID IJIFR/V3/ E8/ 068 Page No. 3076-3089 Subject Area Commerce

Index Terms

Indian Media Industry, Audited Financial Statements, Market Dynamics,

Profitability Position, Earning Per Share(EPS), Net Profit Margin(NPM),

Operating Profit Margin(OPM), Debt Equity Ratio(DER), Return On

Assets(ROA), Return On Networth (RNW), Current Ratio(CR), Fixed

Assets Turnover Ratio(FATR)

1st A. V. Chellamma

M.Phil. Research Scholar

Department of Commerce

V.O.Chidambaram College, Tuticorin -Tamilnadu

2nd V. Sornaganesh

Assistant Professor

Department of Commerce

V.O.Chidambaram College, Tuticorin -Tamilnadu

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ISSN: 2347-1697

International Journal of Informative & Futuristic Research (IJIFR)

Volume - 3, Issue -8, April 2016

Continuous 32nd Edition, Page No.: 3076-3089

A. V. Chellamma, V. Sornaganesh :: Fundamental Analysis Of Media And Entertainment Industry In India

11.7 per cent over 2014. The largest segment, India’s television industry, is expected to maintain its strong growth momentum led by subscription revenues, representing a year-

on-year growth of about 13.2 per cent to reach Rs 60,000 crore (US$ 9 billion) in

2015.Significantly, with the increased penetration of smart phones and expansion of

3G/4G network in India, the country is likely to see around nine billion mobile application

(apps) downloads during 2015, which is five times more than 1.56 billion in 2012. This

uptick in app-downloads is also expected to increase the revenue from paid apps to an

estimated over US$ 241.16 million as against US$ 144.7 million in 2014.

Industry estimates reveal that video games industry grew at a record 22.4 per cent in 2014

over 2013; wherein its net worth rose to US$ 392 million. The Indian animation industry

was valued at US$ 748 million in 2014 and is forecasted to grow at 15-20 per cent per

annum.The Foreign Direct Investment (FDI) inflows in the information and broadcasting

(I&B) sector (including print media) in the period April 2000 – September 2015 stood at

US$ 4.28 billion, as per data released by Department of Industrial Policy and Promotion

(DIPP).

2. REVIEW OF LITERATURE

Literature review is a study involving a collection of literatures in the selected area of

research in which the researcher has limited experience, and critical examination and

comparison of them to have a better understanding. It also helps the researchers to update

the past data, data sources and results and identify the gaps, if any in the researches. Thus,

the reviews in the present study consist of the ones discussed below and they reveal that

there are very scant studies in India emphasizing on the fundamental analysis of the

industry sector.

Jim Berg (1999) conducted a study – “Fundamental Analysis Using Internet”. This

study examined that fundamental analysis looks at the fundamental issues that drive the

value of the particular company. These issues include its financial position, its industry

sector, and the current economic environment. The objective was to identify companies

that may be considered undervalued in the market with a view to investing when the

time is right. In this study, Jim Berg outlined more about what fundamental analysis is

and how it could be used.

In this study, John Colnan (1994), senior Research Analyst from SHAN Stockbroking’s Research Department provides some briefs pointers on what information to look for

and how to make sense of what is available.

Mark P. Bauman (1996) conducted a study named, “A Review of Fundamental

Analysis Research in Accounting”. This paper has outlined the development of

fundamental valuation model and reviewed related empirical work.

First, an accounting-based expression for a firm’s equity value has been developed into

a rich theoretical framework. They verified its descriptive validity regarding the

mapping of accounting numbers into stock prices. This paper identified three major

issues associated with practical implementation of the model; the prediction of future

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profitability, the length of appropriate forecast horizon, and the determination of the

appropriate discount rate.

Jon Lynch conducted a study, “Share Market Analysis-Fundamental Vs Technical

Analysis”, which reveals that in recent times, there has been a bigger push towards

stock market research, which is being conducted by private individuals. This has been

possible through the vast amount of information on the Australian stock market, now

available online to any subscriber. This article explains the difference between the

fundamental and technical analysis; the most common methods adopted to conduct

research on the performance of stock markets.

Vanstone B. Finnie G. and Tan C. (2004) conducted a study entitled- “Enhancing

Security Selection in the Australian Stock Market Using Fundamental Analysis and

Neural Networks”. This paper examines financial trading from the aspect of security

selection. In practice, it is unrealistic for a financial trader to participate in the fill

market of tradable securities competing for investment capital. Essentially, there are

two main methodologies used namely, fundamental analysis and technical analysis.

This paper examines the practice of fundamental analysis and demonstrates how neural

networks can be practically employed to enhance the fundamentalist selection process.

Dr. Maria Nevis Soris and V.Sornaganesh (2012) conducted a study entitled-

“Fundamental Analysis of NBFC in India” This study conducted to examine the

economic sustainability of the five major NBFC in Indian NBFC sector and its financial

performance.

V.Sornaganesh and D. Maheswari (2014) TCS as a welcome game changer that offers

significantly lower pricing, better service levels, more sophisticated offerings, a

customer-centric mindset and a global footprint.

K. Sivagnana Sankari and V.Sornaganesh (2016): There are still challenges in the

current economic environment like inflation, interest burden and pressure on margins

etc., To counter the falling income growth, the retailers have been re-locating the

existing stores in view of the consumer mix relevant to the particular store format or

closure of unviable stores unable to attract footfalls or generate desired revenues on per

square feet basis.

3. NEED AND OBJECTIVES OF THE STUDY

An investor who would like to be rational and scientific in his investment activity has to

evaluate a lot of information about past performance of the companies, industries and the

economy as a whole before taking the investment decision and hence, the present study

attempts to analyze the profitability position of the sample companies.

Some of the objectives of conducting the study are as follows:

To test the financial efficiency of the Retail Industries.

To acquire practical exposure of financial analysis of an enterprise.

To get familiarity of scheming efficiency of different firms.

To analyses the profitability position of the Retail Industries.

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To gain knowledge of evaluating intrinsic value of a firm.

To take decisions cautiously after studying risks involved in the same.

To offer suggestions on the basis of findings of the study.

4. HYPOTHESES FORMULATED

H1: The Earning per Share (EPS) position of Zee Entertainment Enterprises, Sun TV

Network, Dish TV India, TV18 Broadcast and DB Corp, does not differ significantly.

H2: The Operating Profit Margin (OPM) position of Zee Entertainment Enterprises,

Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, does not differ

significantly.

H3: The Net Profit Margin (NPM) position of Zee Entertainment Enterprises, Sun TV


H4: The Debt Equity Ratio (DER) position of Zee Entertainment Enterprises, Sun TV


H5: The Return on Assets (ROA) position of Zee Entertainment Enterprises, Sun TV


H6: The Return on Net worth (RONW) position of Zee Entertainment Enterprises,

Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, does not differ

significantly.

H7: The Current Ratio (CR) position of Zee Entertainment Enterprises, Sun TV


H8: The Fixed Assets Turnover Ratio (FATR) position of Zee Entertainment

Enterprises, Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, does not

differ significantly.

5. RESEARCH METHODOLOGY

The present study adopts an analytical and descriptive research design. The data of the

sample Media industries (for a period of five years from 2011 to 2015) has been collected

from the annual reports published by the Media industries. A finite sample size of five big

media industry has been selected for the purpose of the study. They are Zee enterprises,

Sun direct, Dish tv, TV 18 and DB Corporation. The variables used in the analysis of the

data are Earning Per Share(EPS), Operating Profit Margin(OPM), Net Profit

Margin(NPM), Debt Equity Ratio(DER), Return On Assets(ROA), Return On

Networth(RNW), Current Ratio(CR), Fixed Assets Turnover Ratio(FTR).While

interpreting the results, the statistical tool of one-way Analysis of Variance (ANOVA) has

been used. In view of the objectives of the study listed above, exploratory research design

has been adopted. Exploratory research is one, which largely interprets the already

available information, and it lays particular emphasis on analysis and interpretation of the

existing and available information, and it makes use of secondary data.

Time period for the study

The study is conducted based on the audited financial statements of Media Industries for a

period of 5 years (Mar 2011 to Mar 2015).

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Limitations of the study

Only limited tools were used.

Due to constraint of time, the researcher is not able to cover all the Indian media

industries.

Tools Used For Analysis

Financial Tools: The Financial tool that is used for the purpose of analysis is

Earning Per Share (EPS), Operating Profit Margin (OPM), Net Profit Margin

(NPM), Debt Equity Ratio (DER), Return On Assets (ROA), Return On Net Worth

(RONW), Current Ration (CR), Fixed Asset Turnover Ratio (FATR).

Statistical Tools: The statistical tool that is used for testing hypothesis is One –

way Analysis Of Variance (ANOVA).

6. RESULTANT ANALYSES AND INTERPRETATION

Ratios Used For Analysis

The ratios being calculated for the purpose of analysis of financial performance are:

Earnings per Share (EPS)

Operating Profit Margin (OPM)

Net Profit Margin (NPM)

Debt Equity Ratio (DER)

Return on Assets (ROA)

Return on Net worth (RONW)

Current Ratio (CR)

Fixed Assets Turnover Ratio (FATR)

6.1 Earnings per Share (EPS)

Earnings per Share are the measure of a company's ability to generate after tax profits per

share held by the investors. In practice, the performance of a corporation is better judged

in terms of its earnings per share. The flow of capital to the companies, under the present

imperfect capital market conditions, would be made on the evaluation of EPS. Investors

lacking inside and detailed information would look upon the EPS as the best base to take

their investment decisions. A higher EPS means better capital productivity. This ratio is

computed with the help of the following formula as expressed in rupee terms:

EPS =� � � � ℎ �

The Earnings per Share position of the sample companies is summarized in Table 1 and

discussed below

Table 1: EPS (in rupees) position of sample companies earnings per share (EPS)

Years Zee Enterprises Sun Direct Dish TV TV18 DB Corp

2011 6.06 30.95 1.65 -1.58 16.92

2012 5.33 28.87 3.38 0.93 14.1

2013 7.01 27.82 5.28 0.19 15.7

2014 8.4 29.7 4.16 0.47 20.19

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2015 9.27 33.62 5.77 0.21 22.06

Average 7.21 30.19 4.05 0.04 17.79

This table 1 shows that the EPS of Sun Direct is substantially higher than Zee Enterprises,

Dish TV, TV18, and DB Corp as per data taken from the year 2011 to year 2015. On

Average, Sun Direct has generated EPS of Rs.30.19 highest than others like Zee

Enterprises (7.21), Dish TV (4.05), TV18 (0.04) and DB Corp (17.79). TV18 .Company is

lowest among the five sample companies. The analysis reveals that Sun Direct is the most

efficient company in the terms of generating Earnings per share.

The EPS position of sample companies is compared and tested using the following

hypothesis.

Hypothesis Testing

Ho: EPS of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18

Broadcast and DB Corp, does not differ significantly.

H1: EPS of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18

Broadcast and DB Corp, differ significantly.

Table 2: One-way ANOVA for EPS

Source of Variation SS df MS F P-value F crit

Between Groups 46.41942 4 11.60485 0.077142 0.988409 2.866081

Within Groups 3008.683 20 150.4342

Total 3055.103 24

Interpretation

Since the calculate value of P is 0.988409 which is more than the P value of 0.005

(CV>TV at 5% significance level), the null hypothesis is accepted and the alternative

hypothesis is rejected. Hence, it is concluded that the EPS position of Zee Entertainment


differ significantly. Still they are in evolving stage.

6.2 Operating Profit Margin (OPM)

Operating Profit Margin indicates how effective a company is at controlling the costs and

expenses associated with their normal business operations. A rise in the operating profit

margin indicates a decline in efficiency. This ratio is used to test the efficiency of the

business. This ratio is found out using the following formulae and expressed in percentage

terms.

OPM=� � * 100

The Operating Profit Margin position of the sample companies is depicted in Table 3 and

discussed below

Table 3: Operating Profit Margin (OPM) (in %) position of sample companies


2011 36.11 80.98 16.62 2.77 32.08

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2012 28.44 79.7 25.45 8.91 23.77

2013 33.61 75.75 26.75 19.66 24.34

2014 33.54 69.79 24.96 22.25 26.92

2015 30.49 71.95 26.44 26.27 28.02

Average 32.44 75.63 24.04 15.97 27.03

As shown in table 3, among all the sample companies, Sun Direct has sustained the

highest Operating profit margin followed by Zee enterprises which has registered a

reasonably higher margin. On an aggregate basis, Sun Direct is highly successful in

controlling the expenses by registering the Five years OPM of 75.63. Thus it is found that

Sun direct is the most efficient company in controlling costs and expenses when compared

to other sample companies. The OPM position of sample companies are compared and

tested using the following hypothesis.

a) Hypothesis Testing

Ho: OPM of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: OPM of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 4: One-way ANOVA for OPM


Between Groups 43.30682 4 10.82671 0.018665 0.999256 2.866081

Within Groups 11600.81 20 580.0404

Total 11644.11 24

b) Interpretation

Since the calculated value of P is 0.999256 which is greater than the table value of 0.005

(CV>TV at 5% significant level), the null hypothesis is accepted and the alternative

hypothesis is rejected. Hence, it is concluded that the OPM of Zee Entertainment



6.3 Net Profit Margin (NPM)

Net Profit Margin indicates how much a company is able to earn after accounting for all

the direct and indirect expenses to every rupee of revenue. The ratio is designed to focus

attention on the net profit margin arising from business operations before interest and tax

is deducted. The convention is to express profit after tax and interest as a percentage of

sales. This ratio is calculated by using the following formula and is expressed in

percentage terms.

NPM = � * 100

The Net profit Margin position is the sample companies is depicted in Table 5 and is

discussed below.

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Table 5: Net Profit Margin (NPM) of the sample companies


2011 26.56 40.14 -13.2 -19.49 21.28

2012 22.22 39.53 -8.11 1.49 14.46

2013 24.97 37.6 -3.03 1.89 14.61

2014 25.11 34.19 -6.15 11.47 16.5

2015 24.28 32.86 0.04 2.42 15.78

Average 24.63 36.86 -6.09 -0.44 16.53

As shown in table 5, among all the sample companies, Sun Direct has sustained the

highest Net profit margin followed by Zee Enterprise which has registered a reasonably

higher margin.


Ho: NPM of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: NPM of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 6: One-way ANOVA for NPM


Between Groups 78.92426 4 19.73107 0.057217 0.993422 2.866081

Within Groups 6896.87 20 344.8435

Total 6975.795 24

b) Interpretation

Since the calculated value of p is 0.993422 which is greater than the table value of 0.005


hypothesis is rejected. Hence, it is concluded that the NPM of Zee Entertainment



6.4 Debt Equity Ratio (DER)

Debt Equity Ratio compares the creditors' funds with owners' funds. It indicates how

much money is being placed by the creditors as that of equity holders. It represents the

proportion of borrowed funds in the total capital of the company. It represents the

proportion of borrowed funds in the total capital of the company. A debt equity ratio of

2:1 is the norm accepted by financial institutions for financing of projects. If the

proportion of debt to equity is low, a company is said to be low geared. Higher debt equity

ratio may be permitted for highly intensive industries like petrochemicals, fertilizers,

power, etc. This ratio is calculated by using the following formula and expressed in terms

of times.

DER = �

Total Debt Net worth: The Debt to Equity position of the sample companies is depicted

in Table 7 and is discussed below.

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Table 7: Debt Equity Ratio (DER) (in %) position of sample companies


2011 0.61 0 6.1 5.12 0.94

2012 1.04 0 11.42 8.86 0.99

2013 1.57 0 8.23 0.51 0.75

2014 1.67 0 7.93 0.39 0.69

2015 1.25 0 0.45 0.65 0.54

Average 1.23 0 6.83 3.11 0.78

The five years data reveals that Dish TV has achieved the highest Debt Equity Ratio and is

followed by TV18. Sun Direct alone has no debt. Even the five years Debt Equity of Dish

TV is significantly higher (6.83 times) than that of TV18 (3.11 times), Zee enterprises

(1.23 times) and DB corp (0.78 times).


Ho: DER of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: DER of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 8: One-way ANOVA for DER


Between Groups 38.49806 4 9.624514 0.82138 0.526784 2.866081

Within Groups 234.3499 20 11.71749

Total 272.8479 24

b) Interpretation

Since the calculated value of P value is 0.526784 which is more than the value of 0.05


hypothesis is rejected. Hence, it is concluded that the DER of Zee Entertainment



6.5 Return On Assets (ROA)

Return on assets measures the overall efficiency of capital invested in business. The

profitability of the firm is measured by establishing relation of net profit with the total

assets of the organization. It indicates what the yield is for every rupee invested in assets.

This is computed using the following formula and is expressed in percentage terms.

Return on asset = � � � � * 100

The Return on Assets position of the sample companies is depicted in Table 9 and is

discussed below:

Table 9: Return on Asset (ROA) (in %) position of sample companies


2011 19 32 27 5 26

2012 16 26 14 0.06 18

2013 19 24 9 0.02 19

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2014 19 23 29 2 24

2015 21 22 0.03 0.03 23

Average 18.8 25.4 15.81 1.42 22

As per the data taken from year 2011 to 2015, Sun Direct has achieved the highest yield of

25.4%. The data reveals that TV18 registered the lowest ROA of 1.42%. On the five years

average, Sun Direct has sustained he higher ROA followed by Zee enterprise which has

registered a reasonably higher yield. Thus, Sun Direct is the most efficient company in

generating yield over assets and hence their overall efficiency is better than other four

sample companies. The ROA position of sample companies are compared and tested by

using the following Hypothesis.


Ho: ROA of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: ROA of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 10: One-way ANOVA for ROA

Source of Variation SS Df MS F P-value F crit

Between Groups 0.026969 4 0.006742 0.630249 0.646601 2.866081

Within Groups 0.213955 20 0.010698

Total 0.240924 24

b) Interpretation

Since the calculated value of P value is 0.646601 which is more than the table value of

0.05 (CV>TV at 5% significance level), the null hypothesis is accepted and the alternative

hypothesis is rejected. Hence, it is concluded that the ROA of Zee Entertainment



6.6 Return on Net worth (RONW)

Return on net worth expresses the net profit in terms of the equity shareholders’ funds. This ratio is an important yardstick of the performance of equity shareholders since it

indicates the return on the funds employed by them. The factor which motivates

shareholders to invest in a company is the expectation of an adequate rate of return on

their funds and periodically, they will want to assess the rate of return earned in order to

decide whether to continue with their investment. This ratio is useful in measuring the rate

of return as a percentage of the book value of shareholders equity. It is computed with the

help of the following formula and expressed in percentage:

Return on Net Worth= � � � ℎ * 100

Where, Net Worth= Equity capital + Reserves and surplus

The Return on Net Worth position of the sample companies is depicted in Table 11 and is

discussed below:

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Table 11: Return on Net Worth (RONW) (in %) position of sample companies


2011 19 32 -302 -7 31

2012 16 26 169 1 22

2013 19 24 42 3 21

2014 19 23 49 2 27

2015 18 22 0.3 0.4 25

Average 18.2 25.4 -8.34 -0.12 25.2

Among all the five companies, Sun Direct has made the highest RONW of 25.4%

followed by DB Corp (25.2%), Zee Enterprises (18.2%), TV18 (-0.12%) and Dish TV (-

8.34%) which has registered a reasonably yield.

The RONW position of sample companies are compared and tested using the following

hypothesis:


Ho: RONW of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: RONW of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 12: One-way ANOVA for RONW


Between Groups 2.373558 4 0.59339 1.132328 0.36962 2.866081

Within Groups 10.48088 20 0.524044

Total 12.85443 24

b) Interpretation

Since the calculated value of P value is 0.36962 which is more than the table value of 0.05


hypothesis is rejected. Hence, it is concluded that the RONW of Zee Entertainment



6.7 Current Ratio (CR)

This ratio measures the solvency of the company in the short-term. Current Assets are

those assets which can be converted into cash within a year. Current Liabilities and

provisions are those liabilities that are payable within a year. A current ratio 2:1 indicates

a highly solvent position. A current ratio 1.33:1 is considered by banks as the minimum

acceptable level for providing working capital finance. The constituents of the current

assets are as important as the current assets themselves for evaluation of a company’s solvency position. A very high current ratio will have adverse impact on the profitability

of the organization. A high current ratio may be due to the piling up of inventory,

inefficiency in collection of debtors, high balances in cash and bank accounts without

proper investment. This ratio is calculated by the following formula

Current Ratio =� � � ��

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The Current ratio position of the sample companies is depicted in Table 13 and is discussed below:

Table 13: Current Ratio (CR) (in proportion) position of sample companies


2011 4.56 3.38 0.2 1.32 1.6

2012 5.1 3.57 0.41 1.2 1.58

2013 4.9 4.33 0.23 1.4 1.52

2014 5.28 5.78 0.28 1.24 1.57

2015 4.37 6.73 0.21 1.23 1.67

Average 4.84 4.76 0.27 1.28 1.59

As per the data taken from year 2011 to year 2015, the current ratio of Zee Enterprises

(4.84), it indicates that Zee Enterprises is highly solvent position. Sun Direct has achieved

4.76. Thus it is concluded that Dish TV has achieved the greater short term solvency and

over capitalization when compared to other sample companies. The CR position of sample

companies are compared and tested by using the following hypothesis:


Ho: CR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


H1: CR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18


Table 14: One-way ANOVA for CR


Between Groups 1.575016 4 0.393754 0.081248 0.987224 2.866081

Within Groups 96.92656 20 4.846328

Total 98.50158 24

b) Interpretation

Since the calculated value of P value is 0.987224 which is more than the table value of 0.05 (CV>TV at 5% significance level), the null hypothesis is accepted and the alternative hypothesis is rejected. Hence, it is concluded that the CR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, does not differ significantly. 6.8 Fixed Assets Turnover Ratio (FATR)

This measures the company’s ability to generate sales revenue in relation to the size of the asset investment. A low asset turnover may be remedied by increasing sales or by disposing of certain assets or both. An increase in the fixed asset figure may result from the replacement of an asset at an increased price or the purchase of an additional asset intended to increase production capacity. It is the proportion of sales to the fixed assets, represented. This ratio is calculated by the following formula and expressed in rupee terms.

Fixed Assets Turnover Ratio = � � � � ��

The fixed assets turnover position of the sample companies is depicted in Table 15 and is discussed below:

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Table 15: Fixed Asset Turnover Ratio (FATR) (in %) position of sample companies


2011 2.2 3.56 7.18 0.35 24.15

2012 2.08 3.68 13.05 0.59 17.42

2013 2.42 3.9 7.79 0.43 9.97

2014 3.05 3.1 7.89 0.16 25.25

2015 3.09 3.23 8.75 0.19 28.81

Average 2.57 3.49 8.93 0.34 21.12

The data reveals that DB Corp has the highest Fixed Assets Turnover Ratio of 21.12 times. TV18 has achieved the lowest Fixed Assets Turnover Ratio of 0.34 times. Hence it is concluded that DB Corp is over trading o its assets and it is the most efficient company among all the other four sample companies. The FATR position of sample companies are compared and tested using the following hypothesis:

Hypothesis

Ho: FATR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, does not differ significantly. H1: CR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18 Broadcast and DB Corp, differ significantly.

Table 16: One-way ANOVA for FATR


Between Groups 42.14894 4 10.53723 0.131737 0.968928 2.866081

Within Groups 1599.737 20 79.98684

Total 1641.886 24

Interpretation

Since the calculated value of P value is 0.968928 which is more than the table value of 0.05 (CV>TV at 5% significance level), the null hypothesis is accepted and the alternative hypothesis is rejected. Hence, it is concluded that the FATR of Zee Entertainment Enterprises, Sun TV Network, Dish TV India, TV18 Broadcast and DB Crop, does not differ significantly. 7. FINDINGS

The Earning per Share of Sun Direct is substantially higher than that of other DTH for the

data taken from the year 2011 to year 2015, Sun Direct has generated EPS of Rs.30.19,

making Sun direct is one of the most efficient company’s in terms of generating earnings. Sun Direct has sustained the highest operating profit margin of 75.63%. Thus it is found

that Sun Direct is the most efficient company in controlling costs and expenses as

compare to other sample companies.

Sun Direct has sustained the highest Net profit margin of 36.86%.

Sun Direct has no debt fund when it is compared with other DTH companies and hence it

is most efficient company among all other sample companies.

Sun Direct has achieved the highest ROA 25.4% and it is most efficient company in

generating yield over assets and hence their overall efficiency is better than that of other

sample companies.

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Sun Direct is the most efficient company in generating additional earnings other than four

sample companies.

Zee Enterprises has the greater short term solvency and over capitalization of assets and

hence their overall efficiency is better than that of other sample companies.

DB Corp is highly overtrading on its assets and their overall efficiency is better than that

of other sample companies.

8. CONCLUSION

Speculations being present invariably in all fields of business, investors, at times, await some inspiration or motivation from reliable sources. Inspite of continuous recommendation of FDI from 2011, investors have not come forward to invest in M&E field because the reforms undertaken by the Government are much challenging. Further in order to attract the foreign investors, the government has to ensure stable currency environment and consistency in taxation and policy. Gradually the field is witnessing investment from various people in the past one year, which is also expected to gather momentum in forthcoming decades. Based on forecasts for 138 countries, global digital TV penetration is likely to reach 98% of television households in 2020, up from 40% in 2010 and 68% in 2014. By 2020, 94 countries are expected to be completely digital compared with only 12 in 2013. 9. REFERENCES [1] Jim Berg (1999), Fundamental Analysis using internet, past edition ASX investors update e-

mailnewsletter, (www.asx.com.au). [2] John Colnan (1994), Fundamental Analysis, SHAW Stock Broking Ltd., by ASX investors

updatee-mail newsletter, (www.qsx.com.au) [3] John Lynch, “Share Market Analysis-Fundamental analysis Vs. Technical Analysis”,

(www.eninarticle.com) [4] Dr. Maria Nevis Soris and V.Sornaganesh (2012), Fundamental Analysis of NBFC in

India,OUTREACH – A Multi-Disciplinary Refereed Journal in 2012. [5] Punithavathy Pandian (2005) “Security Analysis and Portfolio Management” Vikas

Publication Pvt Ltd, New Delhi. [6] V.Sornaganesh and D.Maheswari (2014), Fundamental Analysis of Indian IT Industry, IJIFR-

International Journal of Informative & Futuristic Research, ISSN: 2347-1697, Volume -1 Issue -8, April 2014. pp:33-48 (www.ijifr.com)

[7] K. SivagnanaSankari and V.Sornaganesh (2016), Fundamental analysis of Large Scale Retail formats in India – International Journal of Informative & Futuristic Research, ISSN: 2347-1697, Volume -3 Issue -5, January 2016. pp:1630-1645 (www.ijifr.com)

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