Technology

For 2QFY2019, TV Today Network Ltd (TTNL) posted results below our expectations on both top-line as well as bottom-line fronts. Revenue grew by 3.5% yoy to `163cr due to subdued ad revenue growth. On the operating front, margins contracted by 428bp yoy, which resulted in PAT de-growth of ~6% yoy to `30cr.

Outlook and Valuation: Going forward, we expect TTNL to report net revenue CAGR of ~12% over FY2018-20E to ~`897cr and net profit CAGR of ~13% over the same period to `164cr on the back of leadership position in Hindi news genre, upcoming election and strong festive season. TTNL is a debt free
company with `199cr cash on balance sheet. At the current market price of `380, the stock trades at a PE of 15.3x and 13.9x its FY2019E and FY2020E EPS of `24.9 and `27.4, respectively. We recommend BUY with target price of `498.

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