Technology

For 3QFY2019, TV Today Network Ltd (TTNL) posted results below our expectations on both top-line as well as bottom-line fronts. Revenue grew by 6.3% yoy to `199cr due to subdued ad revenue growth. On the operating front, margins contracted by 127bps yoy, which resulted in flat PAT on yoy basis.

Outlook and Valuation: Going forward, we expect TTNL to report net revenue CAGR of ~11% over FY2018-20E to ~`880cr and net profit CAGR of ~12% over the same period to `162cr on the back of leadership position in Hindi news genre and upcoming elections. TTNL is a debt free company with decent cash on balance sheet. At the current market price of `323, the stock trades at a PE of 13.2x and 12x its FY2019E and FY2020E EPS of `23.9 and `27.6 respectively. We recommend BUY on TTNL with a Target Price of `498.

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