Sharekhan has come-up with its latest report on the consumer discretionary space. The brokerage has done a preview ahead of the Q4 results. Here are 3 stocks from the media space, where the brokerage as given significant upside targets and has done a preview.
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Sharekhan says that advertising spends by industry are likely to remain muted in the near term due to inflationary pressures and rural demand slowdown.
"We expect 12% y-o-y revenue growth in Q4FY2022 despite muted advertising and subscription revenue, led by strong collections of ZEE studio's co-produced movies (The Kashmir Files and Valimai). We expect advertising revenue to grow by 4% y-o-y due to weak viewership in certain regional channels (including Marathi and Tamil) and some softness in advertising environment because of higher inflationary pressure across industries. We also expect flat growth in domestic subscription revenue on a y-o-y basis," the brokerage has said.
According to the brokerage adjusted net profit is expected to grow by 0.5% y-o-y in Q4FY2022.
The brokerage expects gains in the stock to Rs 2,250 from the current market price of Rs 1929.
"We expect strong recovery in footfalls in March, given a short-lived Covid-19 third wave, ease of curbs across the country, and strong box office collection of some Hindi movies and regional content (especially in South India). We believe PVR's revenue performance may not be as bad despite a blip in business owing to the third wave of the pandemic and absence of any large movie distribution deals. We expect 14 million footfalls in Q4FY2022 and stable ATP sequentially, while SPH is likely to decline by 7% q-o-q, given higher footfall mix other than premium formats," the brokerage has said.
According to Sharekhan, Higher burn rate in January and February along with re-opening of cinemas in key states would impact profitability of PVR in Q4FY2022.
"We expect EBITDA loss of Rs. 18.0 crore (including IND AS) for PVR. We estimate net loss to be at Rs. 92 crore in Q4FY2022 versus net loss of Rs. 10 crore in Q3. We believe PVR is well poised to recover strongly given strong content pipeline," the brokerage has said.
Sharekhan has set a price target of Rs 678 on the stock of Inox Leisure as against the current market price of Rs 622.
"Though there was some weakness in January and February owing to the third wave of Covid-19, we see strong bounce back in footfalls in March, given reopening of cinemas in key states and release of some big Hindi movies (including The Kashmir Files, Gangubai Kathiawadi, and RRR) and strong regional content. We expect a strong pick-up in revenue in Q4 for Inox Leisure, led by higher footfalls and stable ATP. We believe SPH would decline by 8% q-o-q due to change in footfall mix," the brokerage has said.
"We estimate net loss at Rs. 51 crore in Q4FY2022 versus net loss of Rs. 1.3 crore in Q3, owing to higher burn rate in January and February," the brokerage has said.