Mehabe score: 2 G Factor: 2 Piotski Score: 6 The stock has a rating OBSERVE & HOLD. The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 2 and Piotski score of 6.
Description
Entertainment Network (India) is engaged in operates FM radio broadcasting stations in 63 Indian cities under the brand names Radio Mirchi, Mirchi Love, Mirchi 95 and Kool FM.Site:ENIL
Market Cap:
Rs 971 cr
Price:
204.0
Trading pe:
x
Book-value:
178/share
Div yield:
0.49 %
Earning yield:
-6.45%
Face-value:
10.0/share
52week high:
204.85
52week low:
120.10
Technical Analysis
Stock trades at 204.0, above its 50dma 165.45. It also trades above its 200dma 164.37. The stock remains bullish on techicals
The 52 week high is at 204.85 and the 52week low is at 120.10
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.14 times its book value
– has been maintaining a healthy dividend payout of 22.24%
Weakness
– has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.57% over past five years.
– has a low return on equity of 3.29% for last 3 years.
-Earnings include an other income of Rs.47.48 Cr.
Competition
– The industry trades at a mean P/E of 21.3x. Saregama India trades at the industry’s max P/E of 40.91x. ENIL trades at a P/E of x
– Industry’s mean G-Factor is 3.1 while the mean Piotski score is 8.0. ENIL has a G-Factor of 2 and Piotski scoreof 6.
– Average 1 month return for industry is 21.6%. The max 1- month return was given by Ent.Network: a return of 35.72 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 100.0 cr compared to Rs 152.0 cr for period ended Mar 2020, a fall of 34.2%
Operating Profits reported at Rs 24.0 cr for period ended Mar 2021 vis-vis 23.0 for period ended Mar 2020 .
Operating Margins expanded 886.8 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs -13.9 compared to Rs 3.86 for previous quarter ended Dec 2020 and Rs -0.68 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 272.0 cr for period ended Mar 2021 vis-vis sales of Rs 548.0 cr for the period ended Mar 2020, a fall of 101.5%. The 3 year sales cagr stood at -20.3%.
Operating margins shrank to 6.0% for period ended Mar 2021 vis-vis 23.0% for period ended Mar 2020, contraction of 1700.0 bps.
Net Profit reported at Rs -110.0 cr for period ended Mar 2021 vis-vis sales of Rs 11.0 cr for the period ended Mar 2020, falling 0%.
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 1.0% compared to 3.0% over the last 3 Years. – The stock has given a return of 36% on a 1 Year basis vis-vis a return of -33% over the last 3 Years. – The compounded sales growth on a TTM bassis is -43% vis-vis a compounded sales growth of -0% over the last 3 Years. – The compounded profit growth on a TTM basis is -312% vis-vis a compounded profit growth of -44% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 6.78% vis-vis 6.76% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 15.07% vis-vis 12.75% for Dec 2020
Conclusion
– Stock is trading at 1.14 times its book value
– has been maintaining a healthy dividend payout of 22.24% – has low interest coverage ratio.
-The company has delivered a poor sales growth of 4.57% over past five years.
– has a low return on equity of 3.29% for last 3 years.
-Earnings include an other income of Rs.47.48 Cr.
Fundamentally, the stock remains weak on business fundamentals. Weak near term results have dampened and questioned business drivers. We suggest to wait for a upturn in business performance.
Technically, the stock trades above its 50 DMA 165.45 and is trading at 204.0 It has shown near term bullish momentum contrary to business fundamentals. We suggest to observe price action. However as investors, who like to avoid timing the markets, we suggest to avoid the stock
