Motilal Oswal points out that ENIL enjoys market leadership in the radio space with revenue share of 33-35%. The Times Group network helps bring in advertisements given its association with 25000+ advertisers. The company has one of the strongest balance sheets in the industry with debt free status, cash of Rs. 300cr in its books. These factors will be important in expanding reach with more stations during the Phase-III Auctions.
Motilal Oswal estimates that ENIL will grow its revenues
and PAT at 12% and 19% CAGR over FY13-FY15E. Growth beyond FY15E will depend upon Phase-III auctions which will be a key trigger in FY15E. It recommends to Accumulate the stock for a target of Rs. 400 (20xFY15E EPS)