Buy Entertainment Network; target of Rs 670: ICICIdirect

ICICIdirect.com is bullish on Entertainment Network India and has recommended buy rating on the stock with a target price of Rs 670, in its research report dated February 20, 2015.

February 23, 2015 / 11:53 IST

26 Aug, 2025 12:21

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ICICIdirect.com's report on Entertainment Network India Entertainment Network (ENIL) reported 18.7% YoY revenue growth to Rs 117.0 crore, slightly higher than our estimates of Rs 115.4 crore, led by higher utilisation level of 111% on a blended basis up from 89.0% in Q3FY14

EBITDA came in at Rs 44.8 crore vs. our expectation of Rs 41.9 crore, led by higher revenues and lower-than-expected administrative expenses. The EBITDA margin, hence, came in at 38.3% vs. expectation of 36.3%

PAT came in at Rs 32.8 crore (vs. expectation of Rs 28.5 crore), up 40.9% YoY

"The radio industry continues to benefit from a shift in advertisement spends from TV and print given the lower cost per listener. ENIL, being the market leader, is expected to maintain its robust growth rate exhibiting revenue and PAT growth of 14.2% and 15.2% CAGR in FY14-17E. Phase III will lead to an increase in capacity of radio players and the revenue growth would be a mix of volume and yield. The government’s announcement regarding interim extension of license in case of a delay in auction, lends clarity and provides stability to operations. We have a BUY rating on ENIL, valuing it at a 25x FY17E EPS of Rs 26.8, with a target price of Rs 670", says ICICIdirect.com research report.

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