Buy Music Broadcast; target of Rs 25: ICICI Direct

ICICI Direct's research report on Music Broadcast

Music Broadcast (MBL) reported a weak set of Q2FY21 numbers. Revenues dipped sharply by 51.9% YoY to Rs 30.1 crore on lower ad volumes as well as yield. Reduction in operating costs during the quarter was again a positive. However, EBITDA loss was at Rs 3 crore as the operating performance was impacted by lower topline. Consequently, the company reported a net loss of Rs 6.5 crore against PAT of Rs 18.5 crore in Q2FY20.

Outlook

We upgrade our rating on the stock to BUY (vs. HOLD, earlier) with a target price of Rs 25/share (average of 7x FY22E EV/EBITDA and 16x FY22E EPS).

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