Entertainment Network (India) Ltd. share price target

ENILs Mirchi continued to remain strong brand & reported good performance.Net Revenues are at Rs.1239 million up by 8.2% and Earnings Before Interest, Tax, Depreciation and Amortization (EBITDA) stood at Rs.334 million, increased by 7.6% on YoY basis.The Company's EBITDA margins are at 27.4%. Profit After Tax (PAT) for the quarter grew by 19.9% to Rs.255 million on YoY basis.

Company's Operating Revenue, EBITDA and PAT grew over 18.7%, 17.2% and 27.2% respectively during Q3FY15 (yoy). This was led by growth in core radio business by 15.9%. The strong revenue growth was driven by increased volumes across its Top 8 and Rest 24 stations (yoy).

ENIL Q3FY15 Results First Cut : Entertainment Network India Ltd (ENIL) has reported a strong growth of 18.7% in its operating revenue to Rs 1170 mn (yoy) and 12.1% (qoq). This was slightly higher than our estimates.

EIL reported in Q3FY15 a bleak numbers despite a better order book. Net operating revenue de-grew y-o-y by 5.3 % to Rs3,983 mn, however, on q-o-q basis EBITDA has seen a significant growth from Rs.79 mn to Rs. 358 mn representing an upside of 353%.Depreciation was up by 53.4% on q-o-q basis,100% on y-o-y basis, possibly due to change in the method of accounting for depreciation as required by new Companies Act, 2013.

Karvy initiates coverage of Entertainment Networks India Ltd with a Buy Rating. We expect the company's sales revenue to see a CAGR growth of 11.7% during FY14-FY16E to reach at Rs 4347.4 mn in FY15 and to Rs 4751.91 mn in FY16 as against 10.9% CAGR growth during FY12-FY14.