ICICI Direct recommended hold rating on Music Broadcast with a target price of Rs 15 in its research report dated July 24, 2020.
ICICI Direct's research report on Music Broadcast
Music Broadcast (MBL) reported disappointing results for Q1FY21. Revenues fell sharply by 79.4% YoY to Rs 14.4 crore as ad spend by corporates and government dried up during the Covid-19 led lockdown. Reduction in operating cost by Rs 17.8 crore (down 38% YoY), during the quarter, was a key positive. However, EBITDA was at -Rs 15.3 crore as it was impacted by the lower topline. Consequently, the company reported a net loss of Rs 13.9 crore against PAT of Rs 8.4 crore in Q4FY20.
Outlook
Hence, we maintain HOLD on the stock with a target price of Rs 15/share (average of 3x FY22E EV/EBITDA and 11x FY22 P/E).
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