For 3QFY2019, Music Broadcast (MBL) posted in-line with expectation results both
on top-line and bottom-line fronts. Revenues grew by ~14% yoy to `87cr on the
back of price hike. The company’s operating margins improved by robust 225bps
yoy. On the bottom-line front, MBL reported lower growth of ~38% yoy to `16cr
on the back of higher taxes during the quarter.

Outlook and Valuation: We expect MBL to report net revenue CAGR of ~11% to
~`370cr over FY2018-20E mainly due to increase in advertising rates and
improvement in utilization of new radio stations. Further, on the bottom-line front,
we expect CAGR of ~18% to`72cr over the same period on the back of better
margins. Moreover, considering sustainable growth opportunities over the next 5-
7 years, most of the capex already through and strong parentage, we have a
positive outlook on the company. Thus, we maintain our Buy recommendation on
MBL with Target Price of `475.

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