TV Today an outperformer : Prabhudas Lilladher

Prabhudas Lilladher report has maintained outperformer rating on TV Today with target price of Rs 140, in its June 25, 2008 report. "TV Today Network’s (TVTN) Q4FY08 results were marginally below our estimates. The company reported revenue of Rs638 million, growing by 8.9% YoY. Operating profit for the quarter declined by 9.5% YoY to Rs 184 million with OPM of 28.9%. However, higher other income of Rs 65 million resulted in 10.2% YoY growth in net profit to Rs 135 million. Consolidated revenue for the year grew by 22.3% to Rs 2,311 million. OPM declined by 35bps. However, higher other income and relatively lower depreciation resulted in 40.1% growth in net profit to Rs 436 million. Considering TVTN’s ability to retain market share and monetise existing properties by way of subscription revenue (we have built-in for Rs 119 million and Rs 135 million of subscription revenue for FY09 and FY10 respectively). The scrip appears attractive at valuations of 10.7x FY09 and 8.7x FY10 estimated earnings. We upgrade our rating for TVTN from Market Performer to Outperformer" according to Prabhudas Lilladher report.

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