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

ICICI Direct recommended hold rating on Entertainment Network India with a target price of Rs 145 in its research report dated November 06, 2020.

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November 07, 2020 / 11:50 IST

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 Q2FY21 numbers. Revenues came in at Rs 48.4 crore (down 58.1% YoY) with core radio revenue de-growth of ~57% YoY in Q2FY21. The solutions business witnessed 62.5% YoY decline in revenues. Reported. EBITDA loss came in at Rs 6.3 crore against EBITDA of Rs 28 crore in Q2FY20. Although ENIL managed cost reduction across all fronts, significant fall in revenues led to operating loss. Net loss was at Rs 24.8 crore against net profit of Rs 20 lakh in Q2FY20.

Outlook
The company has cash & cash equivalents of ~Rs 241 crore, which assures liquidity. However, a sharp recovery in ad volume as well as ad yield will be important during the current festive season, which holds the 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 target price of Rs 145 (implying ~4x FY22E EV/EBITDA).

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