Buy Music Broadcast; target of Rs 492: HDFC Securities

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26 Aug, 2025 12:21

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HDFC Securities' research report on Music Broadcast

Music  Broadcast Limited (MBL) reported upbeat 4QFY18 with 14% revenue, 30% adjusted  EBITDA  (reported  65%) and 117% APAT growth (reported 261%) YoY. FY18  revenue/EBITDA  growth  was  modest at 10%/6%. Launch expenses on new stations  dragged  EBITDA.  FY18  PAT  growth  was  41% owing to Rs 4bn IPO proceeds (Mar17 @ Rs 333/sh) and thus higher other income.  Led  by  economic  tailwinds,  consequent higher inventory utilization, and growth  in  new  stations  we  expect  MBL  to register healthy revenue and earning  CAGR of 12% and 22% from FY18-20E (ex acquisition). Core ROCE will improve  from 11.8% to 19.1%. MBL’s prudent capital allocation strategy and focus on profitability are key positives.

Outlook

BUY with TP of Rs 492 (+47%) at 30x FY20E FCFE per share. Recent correction in MBL’s stock price makes risk-reward even more favourable.

For all recommendations report, click here

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