Entertainment Network (India) Ltd., incorporated in the year 1999, is a Small Cap company (having a market cap of Rs 900.97 Crore) operating in Media & Entertainment sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 105.04 Crore, up 17.12 % from last quarter Total Income of Rs 89.69 Crore and down -32.49 % from last year same quarter Total Income of Rs 155.59 Crore. Company reported net profit after tax of Rs -66.25 Crore in latest quarter.
Investment Rationale
Entertainment Network’s (ENIL) Q4FY21 print shows painful recovery for radio, but solutions business, via digital solutions, is emerging as a bright spot. The company is now guiding for majority revenue, over 55%, coming from solutions business in the next few years, and digital alone contributing 25% (from 11.5%). It has taken impairment on additional frequencies amounting to Rs0.9bn. ENIL sees higher capital allocation into solutions business, both organic and inorganic opportunities to drive faster growth. It also plans not to restrict presence at producing content, but own subscribers, which is an ambitious transition. The brokerage cuts FY22E / FY23E EBITDA by 22% and 5%, respectively. It maintains BUY rating on the stock with unchanged target price of Rs214.
Promoter/FII Holdings
Promoters held 71.2 per cent stake in the company as of March 31, 2021, while FIIs held 7.6 per cent, DIIs 6.2 per cent and public and others 15 per cent.
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