Hold Entertainment Network India; target of Rs 180: ICICI Direct

ICICI Direct's research report on Entertainment Network India

Entertainment Network India (ENIL) reported a weak set of Q4FY21 numbers. Revenues came in at Rs 99 crore (down 33.7% YoY) with core radio revenue de-growth of 27.4% YoY. The solutions business witnessed 42% decline YoY due to absence of on-ground activities. However, EBITDA improved 4.5% YoY to Rs 24.0 crore led by cost reduction across employee and marketing expenses, which fell 25% and 56% YoY, respectively. ENIL reported a loss of Rs 66 crore due to provision of impairment of Rs 97.5 crore for second/third frequency stations. Adjusted PAT was at Rs 0.7 crore.

Outlook

We maintain our HOLD rating on the stock with a revised target price of Rs 180 (implying average of ~20x FY23 P/E and ~5.5x FY23E EV/EBITDA, earlier TP Rs 185).