Music Broadcast Ltd. share price target and research reports

Name: Latest research reports of Music Broadcast Ltd. authored by HDFC Securities and published by - Trendlyne research reports.
Item: Music Broadcast Ltd.
Rating: 5
Author: HDFC Securities

Latest analyst research reports with target prices and PDF download for RADIOCITY, BSE:540366 Music Broadcast Ltd.

Music Broadcast Ltd.

23 May 2018

Music Broadcast (4QFY18): Healthy quarter. Maintain BUY

Buy: Music Broadcast Ltd.

HDFC Securities

BUY with TP of Rs 492 (+47%) at 30x FY20E FCFE per share. Recent correction in MBL's stock price makes risk-reward even more favourable. Music Broadcast Limited (MBL) reported upbeat 4QFY18 with 14% revenue, 30% adjusted EBITDA (reported 65%) and 117% APAT growth (reported 261%) YoY. FY18 revenue/EBITDA growth was modest at 10%/6%. Launch expenses on new stations dragged EBITDA. FY18 PAT growth was 41% owing to Rs 4bn IPO proceeds (Mar17 @ Rs 333/sh) and thus higher other income.

Music Broadcast has lost -26.50% in the last 3 Months

Music Broadcast Ltd.

23 May 2018

Music Broadcast

Buy: Music Broadcast Ltd.

Dolat Capital

Traction in Govt. ad spends to drive outperformance; Maintain BUY MBL reports revenue growth of 14.1% YoY led by Phase III stations in terms of volume and by legacy stations in terms of yields. EBITDA margin improved 1100bps YoY to 36.0% is also helped by better collection as no provision for RDD had a positive impact of 200 bps on the margin; balance of the margin improvement (+900bps) was due to absence of losses/launch expenses of new stations. We upgrade our EBITDA estimates by 7%/5% for FY19/FY20 led by better revenue growth in new stations, coupled with...

Music Broadcast has lost -32.73% in the last 6 Months

Music Broadcast Ltd.

23 May 2018

Stellar performance; robust outlook

Buy: Music Broadcast Ltd.

Motilal Oswal

Revenue grew 14% YoY (flat QoQ) to INR759m, in line with our expectation, led by (1) volume growth at new (Phase III) stations, and (2) volume and yield growth at legacy stations. (1) In FY19, EBITDA margin should be higher than 33% (FY18); (2) 8-10% yield improvement likely in FY19; (3) After empanelment on DAVP list, revenue from Phase III stations should grow; (4) EBITDA margin for Friends 91.9 FM should increase to 30% (from current 20%), driven by increase in national advertisers share (through network efficiencies) and growth in listenership (led by content integration). EBITDA should grow at a CAGR of 26%, with EBITDA margin reaching 39% by FY20, led by (1) inherent operating leverage play, (2) higher contribution from new stations (which turned EBITDA breakeven in 4QFY18), and (3) fillip in EBITDA margin of Friends 91.9 FM, driven by revenue and cost synergies.

Music Broadcast has lost -49.60% in the last 1 Year

Music Broadcast Ltd.

23 May 2018

Music Broadcast

Buy: Music Broadcast Ltd.

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Revenues came in at | 75.9 crore (up 14.1% YoY), in line with our estimates. Growth was driven by a mix of volume (largely new stations) and pricing. The company reported 10% revenue growth in FY18, out of which ~8% was volume growth EBITDA came in at | 27.4 crore, up 64.8% YoY, better than our estimate of | 23.5 crore, owing to flattish employee expenses as well lower other expenses (the company had IPO related and new station...

Music Broadcast has lost -26.50% in the last 3 Months

Music Broadcast Ltd.

24 Apr 2018

Music Broadcast

Buy: Music Broadcast Ltd.

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research Music Broadcast has announced the acquisition of Kolkata based radio station Friends 91.9 FM for a cash consideration of | 35 crore from Ananda Offset Pvt Ltd (AOPL). The transaction is also subject to adjustments with respect to any external debt as on date of acquisition and differential in working capital over and above normalised levels of | 9.2 crore. The deal is expected to be consummated in the next three months, post approval of Ministry of Information and Broadcasting (MIB)....

Music Broadcast has lost -49.60% in the last 1 Year

Music Broadcast Ltd.

20 Apr 2018

Media - Radio: Ride the tide

Buy: Music Broadcast Ltd.

HDFC Securities

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.

Music Broadcast has lost -32.73% in the last 6 Months

Music Broadcast Ltd.

27 Feb 2018

Music Broadcast Ltd

Buy: Music Broadcast Ltd.

ICICI Securities Limited

We met the management of Music Broadcast (MBL) to understand its growth prospects and plans ahead. It is one of the leading private FM radio broadcasters in India with the brand Radio City. The company has 39 frequencies currently, including eight stations acquired from Radio Mantra and 11 acquired via Phase III auctions. MBL's operating revenues, EBITDA grew at 21%, 29% CAGR in FY14-17 to | 271.4 crore, | 91.1 crore, respectively. Radio City posted a six year CAGR of ~12.1% vs. 9.1% by industry in advertising volumes. It indicated triggers such as...

Music Broadcast has lost -32.73% in the last 6 Months

Music Broadcast Ltd.

25 Jan 2018

Music Broadcast: Expect strong revival ahead

Buy: Music Broadcast Ltd.

Motilal Oswal

Revenue grew 5% YoY (flat QoQ; in-line) to INR762m, led by volume growth (mainly at new stations). While October 2017saw an impact of a higher revenue base (Diwali was in October 2016), November and December 2017 witnessed ~20% revenue growth, partly attributed to a low base (November and December 2016 suffered due to demonetization). EBITDA declined 12% YoY (+4% QoQ) to INR233m (14% miss) due to a sharp 23% YoY rise in SG&A expenses, particularly on account of the launch of new stations and marquee properties. PAT increased 16% YoY to INR119m (16% miss), led by net finance income of INR4m (v/s net finance cost of INR44m YoY). Revenue for new stations rose to INR48m, leading to overall revenue growth of 5% YoY. This was led by higher volumes in new stations (35% utilization); legacy stations??? volumes continued to de-grow by 3-4%. However, a 5% yield improvement provided solace to legacy stations??? revenue (at INR714m; flat YoY) and EBITDA margin (at ~34%). Avg. utilization across 39 stations stands at 60-65%. Though government/real estate sectors remain laggards, other sectors (led by FMCG/ auto) are eying a recovery.

Music Broadcast has lost -20.92% in the last 1 Month

Music Broadcast Ltd.

01 Dec 2017

Music Broadcast: Breakeven at new stations to drive earnings

Buy: Music Broadcast Ltd.

Motilal Oswal

Local advertisers one of the key drivers of growth continue to feel the heat of GST. Momentum in real estate and government ads too remains weak. However, national FMCG advertisers have started increasing ad spend, which provides some comfort. We estimate FY18 revenue/EBITDA growth at 12%/7%. Management expects the newer stations to breakeven by H1FY19. This should help MBL record healthy EBITDA growth of 35% in FY19. Over the longer term, management expects to outpace industry growth by 1-2%, continuing its trend of doubling revenues in five years....

Music Broadcast has lost -32.73% in the last 6 Months

Music Broadcast Ltd.

22 Nov 2017

MUSIC BROADCAST LIMITED

IPO Note: Music Broadcast Ltd.

Geojit Research

Music Broadcast Limited (MBL) is engaged in the business of operating private FM radio stations through the brand Radio City promoted by Jagran Prakashan Ltd. Advertisements contributes ~99% of its revenues. Radio City is the first private FM radio broadcaster in India. MBL has expanded its presence with radio stations from 4 cities in 2001 to 37 cities as on February 2017 and additional two stations are expected to be operationalised by April 2017. MBL is present in 12 out of the top 15 cities in India by population. As on March, 2016 it has over 4.96cr...

Music Broadcast Ltd. is trading below all available SMAs

Is Music Broadcast Ltd. worth buying?

93 Votes:

Buy 82.8%

Sell 9.68%

Hold 7.53%