Buy TV Today Network; target of Rs 370: ICICI Direct
ICICI Direct’s research report on TV Today Network
TV Today reported strong numbers for the quarter on account of tailwinds related to elections. Reported standalone revenue came in at Rs 245.2 crore while comparable standalone revenues (ex-print) came in at Rs 239.5 crore, up 32% YoY aided by TV broadcasting revenues, which grew 31% YoY to Rs 207.7 crore vs. our estimate of 16% YoY growth. Digital revenues declined 5% YoY to Rs 27.4 crore while FM revenues grew 10%YoY to Rs 4.2 crore. EBITDA grew 17.1% YoY to Rs 74.4 crore, better than our estimates. EBITDA growth was lower vis-à-vis revenue growth on higher production cost and employee expenses, which grew 26.6% and 67.3% YoY, respectively.
We maintain BUY rating on the stock with a target price of Rs 370/share valuing at 12x FY21E EPS.
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