Fabulous results reported by ENIL, cyclicality seems to be playing out here in the media industry with last year being a major bottom. Ad spends have visibly already picked up and we have not reached Q4’24 and Q1’25 yet when the central election advertising starts kicking in.
In Q3 PAT has gone up to to 24 Cr for the quarter versus 3 Cr in Q2 and (8) Cr loss in Q3 last year. Revenues also saw a YOY increase of 21%.
The share price rise has been steep recently but valuation wise, at 12x trailing EV/EBITDA, this is still much below the 20x EV/EBITDA multiples this business has seen in good times earlier. Even Music Broadcast, a business in the same industry as ENIL but lower OPMs is currently trading at EV/EBITDA of 16+.
With Gaana now in their basket, plus all the digital initiatives with Mirchi, the streaming story is picking up pace. Hopefully with election spends, we are looking at a solid Q4 and Q1 ahead.
Disclosure : Same as above, invested since Aug’23 and biased. Added more last week. I am not a SEBI registered advisor and this is not investment advice.
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