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Last Updated : Apr 17, 2019 03:01 PM IST | Source:

Accumulate Entertainment Network (India); target of Rs 662: Prabhudas Lilladher

Prabhudas Lilladher recommended accumulate rating on Entertainment Network (India) with a target price of Rs 662 in its research report dated April 16, 2019.

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Prabhudas Lilladher's research report on Entertainment Network (India)

ENIL's management appeared confident in scaling the non-FCT business (30% revenues) to ~50% in the next 4-5 years. While non-FCT business is margin dilutive as compared to traditional air time sale on radio, gross margins (GM) have witnessed an uptrend over the last 3 years (19% in FY17 to ~28% now). Given low capex, minimal working capital requirements and strong talent pool of employees (350 people), non-FCT business will be a key driver even as the traditional radio business is under pressure (industry growth of 6-7% in FY19). While the non-FCT business provides diversity it has long gestation period and is cumbersome in nature, manpower intensive, requires high marketing budget and in depth knowledge about the product/geography.


Our DCF enabled per share value stands at Rs676 per share. We arrive at blended TP (50% weight to each methodology) of Rs 662 per share. We cut our rating from Buy to Accumulate.

For all recommendations report, click here

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

First Published on Apr 17, 2019 03:01 pm
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