Buy Entertainment Network; target of Rs 630: ICICI Direct


ICICI Direct’s analysis record on Leisure Community

ENIL’s Q3FY19 efficiency was once a combined bag. Whilst non-FCT industry (~ 40% of topline), particularly global live performance drove topline beat, loss in the similar impacted EBITDA & PAT • Revenues got here in at Rs 200.nine crore (up 35.4% YoY), forward of our estimate of Rs 188.2 crore. The topline was once in large part pushed by way of upper percentage of non FCT industry at ~40% vs. 30% previous • EBITDA got here in at Rs 40.Four crore (up 13.5% YoY), a tad less than our expectation of Rs 42.three crore whilst EBITDA margins got here in at 20.1% vs. our expectation of 22.5%, in large part owing to the global live shows industry, which incurred losses • The reported PAT got here in a tad decrease at Rs 16.1 crore (vs. Rs 16.Five crore), because of a omit at the EBITDA entrance.

Outlook

We had been enthused by way of the core expansion trajectory of ~20%, even though the global live performance losses had been disappointing. We minimize our income estimates factoring in vulnerable H1FY20. Alternatively, making an allowance for the inventory worth correction of ~15% within the ultimate 3 months, the valuations have became sexy. Therefore, we improve our score to BUY with a revised DCF primarily based goal worth of Rs 630, (implying ~26x FY21E P/E and ~10.5x FY21E EV/EBITDA).

For all suggestions record, click on right here

Disclaimer: The perspectives and funding guidelines expressed by way of funding mavens/broking properties/score companies on moneycontrol.com are their very own, and now not that of the web page or its control. Moneycontrol.com advises customers to test with qualified mavens sooner than taking any funding selections.


!serve as(f,b,e,v,n,t,s)if(f.fbq)go back;n=f.fbq=serve as()n.callMethod?
n.callMethod.follow(n,arguments):n.queue.push(arguments);if(!f._fbq)f._fbq=n;
n.push=n;n.loaded=!0;n.model=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0;
t.src=v;s=b.getElementsByTagName(e)[0];s.parentNode.insertBefore(t,s)(window,
report,’script’,’https://attach.fb.web/en_US/fbevents.js’);
fbq(‘init’, ‘482038382136514’);
fbq(‘monitor’, ‘PageView’);



Supply hyperlink

This site uses Akismet to reduce spam. Learn how your comment data is processed.