For 1QFY2020, TV Today Network Ltd (TTNL) posted results above our
expectations on both top-line as well as bottom-line fronts. Revenue grew by
~30% yoy to `245cr due to strong ad revenue growth. On the operating front,
margins contracted by 279bps yoy. However, PAT grew ~27% yoy to `51cr.
Outlook and Valuation: Going forward, we expect TTNL to report net revenue
CAGR of ~14% over FY2019-21E to ~`962cr and net profit CAGR of ~12%
over the same period to `170cr on the back of leadership position in Hindi
news genre and upcoming elections. TTNL is a debt free company with decent
cash on balance sheet. At the current market price of `313, the stock trades at
a PE of 12.1x and 11.0x its FY2020E and FY2021E EPS of `25.8 and `28.5
respectively. We recommend BUY on TTNL with a Target Price of `456.

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