ENIL - Q1FY14 Result Update - Kotak

ENIL has reported a strong set of 1QFY14 financials, which leads to a 5% upward revision in our earnings estimates. Radio industry is likely to benefit significantly from a sampling of other media as advertising rates of television channels rise in the wake of TRAI-imposed caps on advertising time (12 minutes cap to apply on TV channels from October). Further, political advertising on radio is likely to help the industry outperform other mass media in the coming quarters.

Valuations are reasonable (14.7x FY14 PER), and earnings outlook is strong. Delay in Phase - 3 auctions (as decision on reserve price has been sent for review to TRAI) deprives the stock of sentimental positives (as expected earlier), but earnings visibility is improving. Maintain BUY.

Source : Equity Bulls

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