Hold Entertainment Network; target of Rs 734 : ICICI Direct

Trade

• Watchlist
• Portfolio
• Message
• Set Alert

 

 

Choose Stock Exchange: BSE LIVE NSE LIVE

26 Aug, 2025 12:21

Volume

Todays L/H

More

×

ICICI Direct's report on Entertainment Network• ENIL reported 11.4% YoY revenue growth to Rs 116.3 crore, largely in line with our estimate of Rs 118 crore. Ad revenue growth came in at 11%, higher than our estimate of 10.5% growth• EBITDA came in at Rs 35.7 crore vs. expectations of Rs 36.6 crore with margins at 30.7%, a tad lower than our expectations of 31%• PAT came in at Rs 27 crore (vs. expectation of Rs 26.1 crore), boosted by higher other income of Rs 12.2 crore vs. our estimate of Rs 9 crore Outlook & ValuationENIL being the largest and most profitable player in the radio industry is best placed to enhance its reach in the upcoming radio frequency auctions. Moreover, with a stark difference in advertisement rates (~Rs 10000 per 10 second slot for ENIL vs.~Rs 120000 to a leading GEC) and wider reach than television, advertisement revenues for radio are expected to grow at a much faster pace. 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 EBITDA CAGR of 13.9% and 17.1%, respectively,in FY15-17E.ENIL continues to be a leader and a key beneficiary of expanding reach and revenue potential of the radio industry. Post the phase III auction, the company, with a second frequency in nine out of Top 13 cities, which contribute ~70% of radio industry revenues, is expected to increase its dominance. We maintain our HOLD recommendation with a target price of Rs 734 (32x FY17E EPS) as we await clarity on the revenue potential from new stations. We highlight that MIB’s approval in favour of the company would be an upside risk to our call, says ICICI Direct research report.For all recommendations, click here Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

Read More