The 13 reports from 4 analysts offering long term price targets for Entertainment Network (India) Ltd. have an average target of 571.50. The consensus estimate represents an upside of 57.01% from the last price of 364.00.
|Summary||Date||Stock||Broker||Price at Reco.||Target||Price at reco|
Change since reco(%)
|2019-08-08||Entertainment Networ..||Motilal Oswal||381.35||500.00||381.35 (-4.55%)||37.36||Buy|
Solution biz safeguards revenue growth albeit at lower profitability: For 1QFY20, ENIL echoed the dismal performance of the media industry in general and the radio industry in particular. Revenue growth of 8.2% YoY (to INR1.4b) garnered crucial support from Non-FCT (Solutions) business (+42% YoY) at a time when Radio segment growth was flattish at 1% YoY. In Radio, increasing cost along with the low 11.6% margin in the 21 new stations of Phase III pushed the segmental EBITDA margin lower to 19% from the historical levels of 25-30%. Moreover, Non-FCT margin remained inherently...
|2019-08-08||Entertainment Networ..||ICICI Securities Limited||381.35||445.00||381.35 (-4.55%)||22.25||Hold|
ICICI Securities Limited
ENIL's Q1FY20 revenue growth of 8.9% YoY was largely led by solutions business (forming 28% of revenues) which grew 42.4% YoY. Radio revenues, on the other hand, were muted with 1.4% YoY growth. EBITDA (excluding Ind-AS 116) came in at | 23.7 crore, a drop of 16.6% YoY, while adjusted margins came in at 17.9%, lower than our expectation of 21.3% given the weakness in the core radio segment. Reported PAT came in lower at | 3.8 crore, impacted by the weak operating performance as well as...
|2019-06-03||Entertainment Networ..||ICICI Securities Limited||469.15||545.00||469.15 (-22.41%)||49.73||Hold|
ICICI Securities Limited
ENIL reported 10.3% YoY revenue growth to | 175.8 crore in Q4FY19. Overall revenue growth for the quarter, was largely aided by non-radio business (grew 26% YoY to | 75.8 crore) while radio revenues were flat at | 100 crore vs. high single digit growth recorded by peers during the quarter). EBITDA growth of 21.8% YoY for the quarter was aided by ~15.8% YoY decline in employee expenses (reversal of provisions pertaining to variable pay, on non-achievement of certain internal targets). EBITDA margins improved 231 bps YoY to 24.5%. PAT increased 64% YoY to | 19.4...
|2019-06-01||Entertainment Networ..||HDFC Securities||477.75||696.00||477.75 (-23.81%)||91.21||Buy|
Weak macros (GST, demon, RERA etc), mgmt focus on price hikes during this tough times and excessive emphasis on non-FCT business (in our view) has led to failure in delivery over FY17-19. This has led to sharp 50% price correction from peak. However, with moderately supportive macros ENIL can deliver healthy growth in all segments of business viz. established 35 stations, new stations (Phase III, batch I & II) and growth plus margin improvement in non-FCT business. FCF generation can thus improve materially from ~Rs 0.8bn to Rs 1.3bn by FY21E and gradually to ~Rs 1.8-2bn. Maintain faith. Entertainment Network (ENIL) 4QFY19 was in-line but weak with flat advertising revenue in core radio business (MBL 7.8%). Maintain faith. BUY with TP of Rs 696 (+37%) @ 25x FY21E P/FCFE.
|2019-05-31||Entertainment Networ..||Prabhudas Lilladhar||477.75||645.00||477.75 (-23.81%)||77.20||Buy|
FMCG is muted. While traditional radio business is under pressure, increasing share of fast growing non-FCT (~33% YoY growth in FY19) business will enable ENIL to register double digit top-line growth over the next 2 years. Nonetheless, we continue to remain apprehensive of renewed focus on non-FCT business due to its margin dilutive nature (~13% EBITDA margin in FY19). Low capex and minimal working capital needs are the only factors that give us comfort as risk of capital misallocation is minimal even if margins fail to meet expectations (aim is to increase non-FCT EBITDA...
|2019-05-31||Entertainment Networ..||Motilal Oswal||477.75||596.00||477.75 (-23.81%)||63.74||Buy|
should make up for overall growth. Revenue growth aside, we believe, higher utilization at old and new Batch 1 stations coupled with increased margins in the Solutions business (a margin dragger) should further drive EBITDA growth. However, this would be partly offset by initial losses in Batch 2 and the US stations; expect 28% CAGR over FY19-21. Potential gains from the...
|2019-04-16||Entertainment Networ..||Prabhudas Lilladhar||526.00||526.00 (-30.80%)||Accumulate|
ENIL's management appeared confident in scaling the non-FCT business (30% revenues) to ~50% in the next 4-5 years. While non-FCT business is margin dilutive as compared to traditional air time sale on radio, gross margins (GM) have witnessed an uptrend over the last 3 years (19% in FY17 to ~28% now). Given low capex, minimal working capital requirements and...
|2019-02-08||Entertainment Networ..||HDFC Securities||547.90||632.00||547.90 (-33.56%)||73.63||Buy|
Reiterate faith. Maintain BUY with revised TP of Rs 632 @ 25x Dec-20E P/FCFE. In 3QFY19, ENIL reported healthy 36% revenue growth. Radio revenue (FCT) grew by 25%. Non FCT (~40% of revenue) growth excluding international concerts (loss making) was up by 12%. ENIL has consistently failed to register for several quarters either on revenue growth and/or margin. It even guides muted revenue growth in near term. This is despite impending election which will boost radio advertising. ENIL attributes weak outlook to slowdown in auto, e-commerce, real estate sectors etc.
|2019-02-08||Entertainment Networ..||ICICI Securities Limited||547.90||630.00||547.90 (-33.56%)||73.08||Buy|
|2018-11-06||Entertainment Networ..||HDFC Securities||631.00||736.00||631.00 (-42.31%)||102.20||Buy|
Reiterate BUY with a TP of Rs 736 at 25x Sept-20E FCFE/share. ENIL reported a muted 2QFY19 performance largely on account of an incomparable base, as bulk of the revenues arising out of festive season are likely to be captured in 3QFY19. Revenue/EBITDA de-grew by 2.6/3.7% YoY to Rs 1.21bn/273mn while PAT growth of ~49% is explained by the lower tax rate (31% vs 55% in 2QFY18) and a higher other income (up ~52% YoY).
|2018-11-06||Entertainment Networ..||ICICI Securities Limited||631.00||690.00||631.00 (-42.31%)||89.56||Hold|
ICICI Securities Limited
Revenues came in at | 122.5 crore (declined 2.6% YoY), lower than our estimate of | 130.7 crore. Core radio revenue (~80% of revenues) grew 6.8% YoY while non-FCT business witnessed the impact of shifting of festivities EBITDA came in at | 27.3 crore, lower than our expectation of | 29.5 crore while margins came in at 22.3%, below our expectation of 22.6%. Margins were also impacted by one-offs (such as higher...
|2018-11-05||Entertainment Networ..||Prabhudas Lilladhar||634.85||836.00||634.85 (-42.66%)||129.67||Buy|
Batch 1 stations reported revenues and EBITDA of Rs216mn and Rs24mn respectively. Batch 2 stations reported EBITDA loss of Rs15mn. Entertainment Network India Ltd (ENIL's) topline declined 2.2% YoY to Rs1,225.3mn despite a favorable base (inventory volume was low in 2QFY18 due to self-imposed caps) on account of shift in festive season (revenue deferment of Rs120-140mn) to 3QFY19. The growth in radio business (ex of non-FCT) was 6.8% YoY and a bit of a disappointment considering Music...
|2018-11-05||Entertainment Networ..||Motilal Oswal||634.85||800.00||634.85 (-42.66%)||119.78||Buy|
declined 2%/4% YoY (5%/7% miss) due to the shift of the festive season to 3QFY19 and the weakness in the Solution business (non-FCT); margins contracted 40bp YoY to 22.3%. Core Radio business revenue rose moderately by 6.8% YoY. However, PAT grew 50% YoY to INR89m (4% miss), led by higher net finance income and relatively low tax (v/s 2QFY18). Adjusted for the festive season shift, revenue/EBITDA were up by 8%/20% YoY. EBITDA margin expanded 300bp YoY to 23%. (2QFY18 was impacted by GST), old stations revenue declined steeply by 9% YoY to INR1,000m, mainly due to the shift of the festive season to 3Q and muted ad spends across the M&E;, real estate and auto categories. A 1% YoY drop in pricing (off a high base) accentuated the impact. Consequently, margins contracted 110bp YoY to 25.
|2018-08-07||Entertainment Networ..||ICICI Securities Limited||745.25||780.00||745.25 (-51.16%)||Hold|
ICICI Securities Limited
Revenues came in at | 121.6 crore (growth of 16.5% YoY) vs. our estimate of | 120.1 crore. Ad revenue growth of 22% YoY came in the background of a low base and was aided by volume growth as no price hike was taken during the quarter EBITDA was at | 28.3 crore, better than our estimate of | 25.3 crore while margins were at 23.3%, better than our estimate of 21%, driven by new stations that turned profitable vs. losses earlier. New stations reported EBITDA of | 74 lakh vs. | 4.3 crore loss in Q1FY18...
|2018-08-06||Entertainment Networ..||HDFC Securities||740.45||850.00||740.45 (-50.84%)||Buy|
BUY with revised TP of Rs 850 at 30x (earlier Rs 827) FY20E FCFE per share. ENILs 1QFY19 Revenue/EBITDA/PAT were better than expected with a growth of 16.5/70/104% YoY. This was owing to low base of 1QFY18 on account of GST and issue with government as a client. Led by low base, upcoming festive season, forthcoming elections, improvement in utilization in new stations and price increase in established stations, we expect ENIL to register healthy revenue and earnings CAGR of 14% and 38% respectively, from FY18-21E.
|2018-08-06||Entertainment Networ..||Motilal Oswal||740.45||851.00||740.45 (-50.84%)||Buy|
EBITDA grew by a robust 65% YoY to INR284m, led by healthy 17% YoY standalone revenue growth to INR1,216m (in-line) and 400bp YoY margin expansion in the non- FCT business to 28%. Overall margin expanded ~690bp YoY to 23.3% (260bp beat). for one-offs (provision write-back), PAT grew 3.3x to INR72m (19% beat). Old stations recovered with a healthy 14% YoY revenue jump to INR999m, post the disappointment in FY18 when prices had increased and ad volumes subsequently declined (partly voluntarily). This drove a 62% YoY jump in EBITDA of old stations. The newly launched 17 batch-1 stations saw robust 70% YoY revenue growth, driving EBITDA of INR7m (v/s -INR44m in 1QFY18), partly offset by an INR9m loss on launch of some batch-2 stations. (1) Entire 22% YoY growth in radio revenue was volume- led. (2) Old/new stations average utilization at 80%/30%. (3) Remaining 16 of 21 batch-2 stations to be launched by mid-3QFY19.
|2018-05-25||Entertainment Networ..||ICICI Securities Limited||663.90||750.00||663.90 (-45.17%)||Target met||Buy|
ICICI Securities Limited
Revenues came in at | 159.4 crore (de-growth of 3.5% YoY), slightly below our estimates of | 163.6 crore, largely an after-effect of lower government ads due to tourism based ad campaign in Q3FY18, which had led to government ad pullback till February, 2018. However, the company's commentary suggests it has been resolved and a strong recovery could be witnessed, going ahead EBITDA came in at | 35.4 crore, in line with expectations of | 35.3 as...
|2018-05-24||Entertainment Networ..||HDFC Securities||655.00||827.00||655.00 (-44.43%)||Buy|
BUY with TP of Rs 827 at 30x FY20E FCFE per share. ENIL is best poised to capture the recovery with its strong radio footprint. Currently only 35 of its 76 stations contribute to profitability. ENILs 4QFY18 was in-line but muted. Revenue declined 3.7% YoY owing to high base and cut in ad volumes. EBITDA was flat YoY while APAT was up 13% (RPAT -15% due to higher tax).
|2018-05-24||Entertainment Networ..||Motilal Oswal||655.00||770.00||655.00 (-44.43%)||Buy|
Yet, EBITDA of INR352m was flat YoY (-1% QoQ; 2% miss), as a steep 22% YoY fall in other expenses offset the impact of revenue decline. PAT declined 15% YoY to INR117m (13% miss) due to one-offs in taxes. PAT declined 41% YoY to INR324m (5% miss). 3) New stations are expected to reach 35% EBITDA margin by FY20 and contribute 20% of overall revenue. Inventory capping in FY18 led to a steep 18%/10% volume/revenue decline in legacy stations. We believe that it would take long for ENIL to recoup the downfall, despite a 7-10% yield improvement (at legacy stations, which constitute 80-85% of overall revenue), and thus, cut our overall revenue/EBITDA estimate by 4% for FY19 and 9%/20% for FY20. We expect 18% revenue CAGR over FY18-20, primarily led by higher utilization at new stations (Phase III- Batch 1) and support from relatively small Phase III- Batch 2 stations (post launch in FY19).
|2018-02-06||Entertainment Networ..||Dolat Capital||687.60||840.00||687.60 (-47.06%)||Buy|
EBITDA margin declined 131bps YoY to 24% (DCMe: 25.2%) on back of higher marketing cost and better profitability in non-radio business. PAT during the quarter declined 19.9% to ` 132mn (DCMe: ` 160mn) on back of lower margins and higher tax rate (35%). Non-radio revenue (Contri. 28%) improved 16% YoY while Radio business declined 9% YoY as inventory fell 13.4% YoY and pricing grew 8.6%YoY. Non-radio business is expected to deliver healthy margins on back of new products being added in the segment....