Buy Music Broadcast; target of Rs 469: Motilal Oswal

Motilal Oswal's research report on Music Broadcast

Revenue grew 14% YoY (flat QoQ) to INR759m, in line with our expectation, led by (1) volume growth at new (Phase III) stations, and (2) volume and yield growth at legacy stations. This coupled with 3% decline in opex (including write-backs) led to 65% YoY (17% QoQ) jump in EBITDA to INR274m, an 8% beat.

Outlook

Asset-light business model coupled with robust growth should provide impetus to healthy return ratios. We expect RoE/RoCE to reach 14% by FY20 (9% FY18). We maintain Buy, with a TP of INR469 (EV of 15x FY20E EBITDA).

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