Which are the future losers and winners in the media space? Phani Shekhar of Angel Broking speaks on the media sector and separates the winners from the losers.

Excerpts from CNBC-TV18's exclusive interview with Phani Shekhar:

What did you make of trade today and the way we are holding up right now?

We are rangebound. We opened negative this morning and it was a clear case of profit booking. Going forward, at least in the short-term we will be trading in a plus minus 5 per cent kind of range.

What would be your call on metals now?

I will be extremely selective in metals. Metals as a complete basket would be a risky call to take, but I would be bullish on Hindalco [Get Quote].

Your reaction really to the broadcast regulatory authority being set up and also the changes that are proposed as of now.

It is looking at a number of restrictions, 20 per cent as far as crossholdings go. In any market you can't have more than 15 per cent of the subscriber base, only 15 per cent of the channels can be under any one company.

Do you see any immediate impact or do you think it is just going to be curbing growth in the longer-term?

As far as the new draft proposals are concerned, I do not think there will be any major impact on the bigger players. But as far as smaller players are concerned, there will definitely be a short-term obstacle to their growth plans. As far as Star, Zee Telefilms or Sun TV [Get Quote], Sony Entertainment are concerned, I do not think there should be a major problem.

What do you like about Inox Leisure [Get Quote] vis-�-vis PVR, Shringar Cinemas [Get Quote] or Adlabs Films [Get Quote]?

Inox Leisure is a company, which is keenly focused on profitability and not essentially on volume growth. As opposed to PVR, Inox has categorically made it clear that they will be chasing only profitable growth and not volume growth.

Their operating margins are around 40 per cent, which is double than that of their nearest competitor - PVR. Volume-wise they will not be as big going forward in the next two-three years. From an investors point of view, they make very good investment sense for a simple reason that it is a company, which is focused on profitability, higher return on equity vis-�-vis other players in this space. To that extent as an investor, one gets a pie in the ever-expanding multiplex space in a profitable way.

What about Sun TV?

Sun TV is a very exciting story. It looked stretched to many people at the time of its IPO. We have always maintained that it is a very good story, which will pan out in the next two-three years. The listed entity is present in Tamil Nadu and Kerala and it is already the second largest broadcaster after Star. We believe that exciting times are ahead for Sun TV, alongwith the FM radio story also coming into the picture.

Inox Leisure at Rs 125 and Sun TV at Rs 975 - is it a buy for you?

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