4 Media & Entertainment Stocks That Could Be Worth Buying At Current Levels

Brokerage firm, Prabhudas Lilladher has recommended buying the stocks of Inox Leisure, Nazara Technologies, PVR and Zee Entertainment Enterprises from the media space. Here are some of the reasons, why the brokerage is upbeat on these stocks.

Buy Nazara Technologies with a price target of Rs 1031 on the stock

Prabhudas Lilladher expects Nazara's top-line to increase 75% YoY on account of growth in ESports as offline events gained traction coupled with consolidation impact of Datawrkz and OpenPlay.

"However, sequentially the top-line is expected to remain flat. Headwinds in Kiddopia have subsided, as price hike was taken during last quarter. We expect EBITDA/PAT margin of 13.1%/5.2% respectively. We retain ‘BUY' on Nazara with a DCF based target price of Rs 1,031," on the stock.

Zee Entertainment: target price of Rs 302 on the stock

The brokerage also has a buy call on the stock of Zee Entertainment. "We expect domestic ad-revenues to decline by 8.0% YoY as FMCG ad-spends have been soft due to raw materials cost inflation, however, recovery is expected from 3Q. Even domestic subscription business is expected to remain flattish due to pricing embargo amid pending implementation of NTO 2.0. On the other hand, EBITDA margin is expected to remain under pressure and settle at 13.6% due to continued investment in content," the brokerage has said.

Buy the stock of PVR, says Prabhudas Lilladher

According to the brokerage, revenue is expected to increase 469% YoY to Rs6,841mn on a lower base. "Due to dearth of strong content and only 2 films crossing Rs 1bn mark, we expect footfalls to be 17.6mn, 40%/30% lower than pre-COVID base/sequential basis respectively. Given weak footfalls, we expect pre IND-AS EBITDA losses of Rs86.7mn," the firm has said.

The firm has set a price target of Rs 1786 on the stock, with a buy call.

Buy Inox Leisure, says Prabhudas Lilladher

Another stock, where the firm sees an upside potential is the stock of Inox Leisure. "Due to dearth of strong content and only 2 films crossing Rs1 bn mark we expect footfalls to be 11.5mn, 39%/37% lower than pre-COVID base/sequential basis respectively. Given weak footfalls, we expect pre IND-AS EBITDA losses of Rs 50 mn while ATP and SPH are expected to remain steady," the brokerage has said.