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Hold Entertainment Network India: PINC
PINC Research has maintained its hold rating on Entertainment Network India. Entertainment Network India Limited (ENIL) registered a 55% growth in consolidated revenues to Rs 1 billion in Q1FY09 with operating profits of Rs 29 million (vs. Rs 3 million in Q1FY08) and net loss after minority interest of Rs 80 million.
PINC Research has maintained its hold rating on Entertainment Network India in its August 7, 2008 research report. "Entertainment Network India Limited (ENIL) registered a 55% growth in consolidated revenues to Rs 1 billion in Q1FY09 with operating profits of Rs 29 million (vs. Rs 3 million in Q1FY08) and net loss after minority interest of Rs 80 million."
"At the CMP of Rs 298, ENIL trades at a P/E of 15x and EV/EBIDT of 7.5x its FY10E earnings. With full fledged competition, ENIL shall struggle to maintain its market share, though it is amongst the top players in the industry. The newly operational stations are expected to stabilize by end-FY09, which would contribute to sales but in the process dampen profitability. The OOH and Events business are also expected to turnaround in the near future, but we anticipate the current economic slowdown to delay the same. Hence, we maintain our 'HOLD' recommendation," says PINC's research report.
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