Motilal Oswal bullish on Music Broadcast has recommended buy rating on the stock with a target price of Rs 420 in its research report dated October 17, 2018.
Motilal Oswal's research report on Music Broadcast
The Music Broadcast Ltd (MBL) stock is down ~30% from its peak YTD—partly due to concerns over growth visibility for the radio medium at large, and MBL in particular. Also, MBL posted weak 10% revenue growth in FY18 and 8% revenue CAGR in 1HFY19, which is much lower than our expectation. In this context, we hosted MBL management for an investor roadshow to discuss the radio sector outlook and MBL’s growth prospects.
Outlook
Although the overall media sector has seen de-rating due to concerns about digital evolution, the radio segment appears well poised for sustainable growth, primarily as it continues to offer attractive value proposition for advertisers and enjoy good listenership. We arrive at a TP of INR430 on 15x EV/EBITDA (v/s INR450). Maintain Buy.
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