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Buy Entertainment Net, target Rs 293.50: Nirmal Bang
Nirmal Bang has recommended a buy rating on Entertainment Network (India) Ltd (ENIL) with price target of Rs 293.50. The company reported net loss of Rs 18.2 crore in Q2FY09 against a loss of Rs 17.2 crore in Q2FY08 and Rs 8 crore loss in Q1FY09.
Nirmal Bang has recommended a buy rating on Entertainment Network (India) Ltd (ENIL) with price target of Rs 293.50, in its report. "ENIL declared its Q2FY09 results which were in line with our expectations on the revenue front. The company reported revenues of Rs 109.57 crore as against Rs 86.3 crore in Q2FY08 i.e. 27.0% rise YoY basis and Rs 107.0 crore in Q1FY09, a 2.4% rise on QoQ basis. The company reported net loss of Rs 18.2 crore in Q2FY09 against a loss of Rs 17.2 crore in Q2FY08 and Rs 8 crore loss in Q1FY09. At the current price of Rs 150 per share, ENIL is currently available at 24.5x FY10E & 12.0x FY11E. However the high PE multiple in the initial years is justified looking at the huge capex plans of the company & the company being in the high growth phase."
"We expect the company to earn a RONW of 11% in FY10E & 19% in FY11E. At Rs 150 per share the stock is trading at a discount of 95.6% from our intrinsic price of Rs 293.5 per share. We reiterate our BUY rating on the stock with a revised price target of Rs 293.5 per share with a long term view," says Nirmal Bang's report.
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