Hold Entertainment Network India; target of Rs 145: ICICI Direct

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26 Aug, 2025 12:21

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ICICI Direct's research report on Entertainment Network India

Entertainment Network India (ENIL) reported a weak set of Q1FY21 numbers. Revenues came in at Rs 38.5 crore (down 71% YoY) with core radio revenue de-growth of ~84% YoY in Q1FY21. The solutions business saw 40% YoY decline in revenues (60% decline without brand licensing revenue). Reported EBITDA came in at -Rs 25.9 crore against EBITDA of Rs 33.1 crore in Q1FY20. Although ENIL managed a cost reduction across all fronts, negative operating leverage led to EBITDA loss. The company reported a net loss of Rs 37.9 crore against net profit of Rs 3.9 crore in Q1FY20.

Outlook

However, recovery in radio ad growth is key for overall rerating of the stock. We believe full ad recovery is still a couple of quarters away. Hence, we maintain our HOLD rating on the stock with a revised target price of Rs 145 (implying ~4x FY22E EV/EBITDA).

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