Prabhudas Lilladher’s analysis document on Song Broadcast
Song Broadcast Ltd (MBL) reported a gradual efficiency with revenues expanding 5.7% YoY to Rs801mn because of emerging stock usage in batch 1 stations and worth hike of 8% taken within the best 12 markets throughout the former quarter. EBITDA margin expanded 120 bps YoY to 33.1% because of incremental contribution coming in from batch 1 stations that broke even in 4QFY18 and working leverage advantages that began kicking in with making improvements to usage. PAT enlargement was once muted at 8.5% YoY (inclusive of OCI), in spite of working margin growth because of upper tax price of 39.4% attributable to redemption of longer term investments (draws upper tax) to fund the purchase again. Control maintains income enlargement steerage of 12-14% and expects EBITDA margin to extend in FY19E at the again of upcoming festive season and select up in political/executive spends with elections nearing. Given emerging usage and efficient price we predict gross sales and PAT to develop at a CAGR of 12.2% and 22.7% over FY18-20E. We worth the inventory at 15.5x FY20 EBITDA of Rs1.34bn to reach at in line with percentage worth of Rs397 in line with percentage. Our DCF enabled in line with percentage worth stands at Rs392 in line with percentage.
We arrive at mixed TP (50% weight to each and every method) of Rs394 in line with percentage. Handle BUY.
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