Media companies rise sharply as election advertisement spending soars.

Expectations of increasing ad sales during the next election season, together with other stock-specific factors like lowering newsprint prices, have propelled media companies to an incredible five-day run.The Bennett, Coleman and Co. subsidiary Entertainment Network India Ltd (ENIL), which runs Radio Mirchi, has increased by 17% during the last five trading days. Rival print media company HT Media Ltd, which publishes Mint and Hindustan Times, saw a 2.65% increase over that time.DB Corp., the publisher of Dainik Bhaskar, and Network18 Media & Investments Ltd. and Sun TV, the television network operators, spearheaded the first boom. However, investors are now banking on print and radio companies as well.

Over the last half-year, Network 18 and TV18 Broadcast Ltd have had gains of 87% and 53%, respectively, while DB Corp has experienced a 63% increase and Sun TV has seen a 35% increase.Moneycontrol spoke with analysts who linked the recent jump to anticipation of increasing ad revenues in the run-up to the elections, but stock-specific factors also played a part.Among the largest gainers from political party expenditure in the run-up to elections have been media corporations.

Television, print, and radio media companies are expected to benefit from the upcoming advertising frenzy by the Bharatiya Janata Party and its competing political parties over the next six months.According to Karan Taurani, Senior Vice President at Elara Capital, "there is an expectation that advertisement spending will see a strong momentum over the next six to eight months due to the elections." He also added that the rally in media stocks is a result of the general elections' positive impact on radio, television, and print advertising.According to Ashish Goel, Managing Partner and CEO of InvestSavy PMS, political parties are expected to provide media firms with significant revenue growth.Indeed, the rise in advertising revenue in the last quarters of the fiscal years 2014 and 2019 (which happened to be years when there were parliamentary elections) was essentially the same as in years when there were no elections. According to a Moneycontrol research, in the fourth quarter of 2013–14, advertising sales climbed for Jagran Prakashan, HT Media, and DB Corp, respectively, by 12.7 percent, 14%, and 14.3 percent over the same period the previous year. These increases were consistent with the growth observed in non-election years.