• Language
  • App
  • Subscriptions
  • Specials
  • Sign-In
  • Register
GeStepAhead Realasset Realasset
moneycontrol.com

Home » News » Recommendations

May 22, 2013, 01.26 PM | Source: Moneycontrol.com

Hold Entertainment Network; target of Rs 260: AnandRathi

AnandRathi has recommended hold rating on Entertainment Network India with a target of Rs 260, in its May 21, 2013 research report.

Like this story, share it with millions of investors on M3

Hold Entertainment Network; target of Rs 260: AnandRathi

AnandRathi has recommended hold rating on Entertainment Network India with a target of Rs 260, in its May 21, 2013 research report.

Post Your Comments

Share Cancel

(more)

, AnandRathi |

AnandRathi`s research report on Entertainment Network India

"Operating performance as expected. Entertainment Network (India) reported a stable operating performance: standalone revenue grew 10 percent yoy, EBIT and PBT were up 9 percent each. All three came in line with our expectations. However, the lower-than-expected effective tax (at 17 percent, vs estimated 29 percent) resulted in robust net profit growth of 28 percent, and a 17 percent earnings surprise. Capacity utilization rose to 93 percent, from 84 percent in 3QFY13 and 77 percent in 4QFY12. This implies 21 percent growth in inventory, against our expectation of 17 percent. We estimate utilization in the top eight stations to have touched 112 percent (management had earlier indicated headroom exists upto ~125 percent ideally). In the other 24 stations it could have reached ~87 percent."

"Pricing likely to head north from 2QFY14. Pressure on ad yields continue, as yields fell 7 percent yoy. The company has selectively hiked prices; average yields have been dragged down by change in mix (greater volumes from newer stations). Management expects meaningful price hike are likely from 2QFY14. We raise our consolidated revenue estimates just a touch as volume growth continues to be robust despite the high utilization. We have toned down our margins assumptions (factoring in the lower yields), leading to a modest earnings revision. On the back of this revision and the roll over from Sep’13 to Mar’14, our DCF-based price target is up from Rs 245 to Rs 260.”

“On the considerable cash outflows expected due to license acquisitions and renewals, we rate the stock a Hold. Our target implies an FY14e P/E of 16.3x (vs the present one-year-forward P/E of 15x). We have incorporated the estimated NPV impact of Rs 2.7bn (Rs 58 a share), due to license renewals, into our target price," says AnandRathi research report.   

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click here

Ads by Google

Buy, Hold, Sell ? Hear it first on M3
Hold Entertainment Network; target of Rs 260: AnandRathi

See all

Get started using your favorite social network

or

Login using moneycontrol ID

Username
Password

Need help logging in? Reset password.

Don´t have an account? Sign Up

Get started using your favorite social network

or

Simply sign up using this short form

* mandatory

UserName*

Username should be atleast 4 character

Password*

Password should be 8 or more characters,
atleast 1 number, 1 symbol & 1 upper case letter

Alert

Your Password should contain
  • 8 or more characters
  • At least 1 number
  • At least 1 symbol
  • At least 1 upper case letter
Confirm Password*
Email
Already have an account? Login