TV Today Network (TTNL) reported a good set of numbers for 1QFY2017 with its consolidated top-line growing by ~8% yoy for the quarter. On the operating front, the company reported margin expansion on account of lower selling & administrative expenses, which lead to the net profit growing by ~24% yoy for the quarter.

Outlook and Valuation: We expect TTNL to report a net revenue CAGR of ~16% to ~`743cr and net profit to post a ~16% CAGR to `128cr over FY2016-18E. The company has sustained its leadership position in the Hindi news genre for14 consecutive years while in the English news genre it currently holds the No.2 position. Further, its exit from the radio business should boost profitability. The company is debt free with `201cr of cash on its balance sheet. Hence, maintain our Buy recommendation on the stock with a target price of `363.