Buy Entertainment Network; target Rs 282: ICICIdirect.com

ICICIdirect.com's report on Entertainment Network India (ENIL)

"Entertainment Network India (ENIL) reported its Q1FY14 results, which were way above our expectation on account of strong volume based advertisement growth. The company reported a standalone topline of Rs 85.2 crore, growing 21.7 percent YoY, vs. our expectation of Rs 81.6 crore. The EBITDA margin came in at 35.0 percent, expanding 584 bps YoY, while the absolute EBTIDA was at Rs 29.9 crore. The company reported PAT of Rs 20.1 crore vs. our expectation of Rs 14.7 crore. ENIL indicated that the radio industry has partly benefited from recent ad rate hikes by television broadcasters on the back of partial implementation of Trai ad inventory cap. However, such a high ad growth may be unsustainable in subsequent quarters." "The radio industry, in general, would benefit from price hikes in other mediums and would present itself as a cheaper advertisement alternative in the backdrop of the general economic slowdown. We maintain our target price of Rs 282 and rate the stock as BUY," says ICICIdirect.com 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.

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