Buy Music Broadcast; target of Rs 450: Dolat Capital

Dolat Capital's research report on Music Broadcast

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.

Outlook

We believe higher ad. spends due to elections, introduction of MRUC rating and lower threat from digital vs other segments of media are some of the key triggers for performance of radio. We maintain our BUY recommendation and rollover to Jun��19 TP of ` 450 based on 17x one yr. fwd. EV/EBITDA.

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Read More First Published on May 31, 2018 03:47 pm