We are BUYERs with TP of Rs 827 on ENIL and Rs 492 on MBL (both based on 30x FY20E FCFE). Radio businesses in India need to be valued on FCFE rather than PE, given upfront investments for 15-year licenses. The Indian Radio sector reported a healthy 17% ad revenue growth over FY14-16, despite stagnant advertising inventory. Over FY16-18E, revenue growth struggled at ~4.7% CAGR, despite a 33% est. addition to advertising inventory from new frequency additions. A slowdown in ad spends (owing to demonetization, GST and RERA) was apparent. This subdued show coincided with heavy upfront investments in Phase II license renewals and Phase III auctions in FY16/17 that dragged profitability.