BQ Prime’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BQ Prime’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Prabhudas Lilladher Report
Media:
As eight movies have breached Rs 1 billion mark, industry wide box office collections stood at record levels of ~Rs 32.7 billion in Q2 FY24E. Accordingly, we expect PVR-Inox Ltd. to report standout performance with footfalls of 47 million (~30% occupancy) and pre-Indian accounting standard Ebitda margin of 19.2%.
On broadcasting side, while Zee Entertainment Enterprises Ltd.’s performance is likely to be impacted by continued weakness in ad environment, windfall from Gadar-2 (co-produced by Zee Studios) should aid performance in Q2 FY24E.
We expect domestic ad-revenues to decline 2.5% YoY to Rs 9.3 billion with an Ebitda margin of 11.1% (back in double digit after two quarters).
Entertainment: While Nazara Technologies Ltd.’s top-line growth of 19.3% YoY will be aided by consolidation of WildWorks (base quarter had consolidation impact of one month) and healthy growth in Nodwin, Ebitda margin is likely to be at 8.3%.
We believe Nazara is on a strong growth path as recent fund infusion of ~Rs 5.1 billion can help the business expand inorganically, while return of BGMI is a big positive for Esports viewership.
Top pick:
Though Nazara has remained our preferred pick in the media and entertainment space for quite some time given 50% plus appreciation in last 6 months, we switch to Zee Entertainment as it has a better risk-reward at current levels given merger overhang is now over.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. BQ Prime does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BQ Prime.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
RECOMMENDED FOR YOU
POPULAR