Music Broadcast - Q1FY21 Result Update - ICICI Securities

Music Broadcast (MBL) reported disappointing results for Q1FY21. Revenues fell sharply by 79.4% YoY to Rs. 14.4 crore as ad spend by corporates and government dried up during the Covid-19 led lockdown. Reduction in operating cost by Rs. 17.8 crore (down 38% YoY), during the quarter, was a key positive. However, EBITDA was at -Rs. 15.3 crore as it was impacted by the lower topline. Consequently, the company reported a net loss of Rs. 13.9 crore against PAT of Rs. 8.4 crore in Q4FY20.

Valuation & Outlook

The radio segment, already under pressure due to macroeconomic slowdown, was hit hard by the Covid-19 led lockdown. Ad spend by corporates/government has almost dried up. While MBL's liquidity position is healthy and ad volume picked up compared to April, we believe a recovery in ad revenue is still one to two quarters away. Hence, we maintain HOLD on the stock with a target price of Rs. 15/share (average of 3x FY22E EV/EBITDA and 11x FY22 P/E).

For details, click on the link below: https://www.icicidirect.com/mailimages/IDirect_MusicBroadcast_Q1FY21.pdf

Shares of Music Broadcast Ltd was last trading in BSE at Rs.16 as compared to the previous close of Rs. 15.55. The total number of shares traded during the day was 84749 in over 478 trades.

The stock hit an intraday high of Rs. 16.2 and intraday low of 15.3. The net turnover during the day was Rs. 1344522.

Source : Equity Bulls

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