Entertainment Network (India) Limited (ENIL) AI Stock Analysis

• Market Cap: ₹5.03B
• Dividend Yield: 1.77%
• Average Volume (3M): 820.00
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: 6.85%
• EPS Growth: -48.87%
• Country: IN
• Employees: 916
• Sector: Services
• Sector Strength: N/A
• Industry: Broadcasting
• EPS (TTM): -1.35
• Shares Outstanding: 47,670,418
• 10 Day Avg. Volume: 911
• 30 Day Avg. Volume: 820
• PEG Ratio: -0.80
• Price to Book (P/B): 0.77
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 31.38
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 4.5
• Revenue Forecast (FY): ₹5.71B

• Rating: 55 Neutral
• Price Target: ₹108.00 ▼(-8.86% Downside)
• Action: Reiterated Date: 11/01/25
• Date: Action: Reiterated 11/01/25

The overall stock score is primarily influenced by the company's solid financial performance, despite challenges in cash flow generation. Technical analysis indicates bearish momentum, which negatively impacts the score. The high P/E ratio suggests overvaluation, but the dividend yield provides some compensation. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Revenue Growth Trajectory

Consistent top-line growth (mid-single digits) indicates the core radio advertising and event businesses are still expanding. Over 2-6 months this supports steady advertiser demand and pricing leverage, enabling reinvestment in content, market penetration, and digital audio extensions.

Strong Gross & Improved EBIT Margins

A high gross margin and a materially improved EBIT margin signal structural operating efficiency and scalable cost control in content and broadcast operations. This strength supports durable profitability resilience through ad cycles and funds strategic initiatives like events and digital monetization.

Conservative Balance Sheet

Low leverage and a strong equity ratio provide financial flexibility to invest in network expansion, events, or digital capabilities without material refinancing risk. This conservative structure strengthens resilience to advertising cyclicality and supports multi-month strategic planning.

Negative Factors

Low Net Profit Margin

A very thin net margin implies limited retained earnings and a small buffer against revenue volatility. For a media company tied to ad spend, this reduces the capacity to self-fund growth initiatives, increases sensitivity to cost shocks, and weakens long-term earnings durability.

Weakened Cash Generation

Declining operating cash flows and negative FCF growth constrain the firm’s ability to finance events, capex, and digital investments from operations. Even with FCF/net income above 1, the downward trend raises the risk of external funding needs or cuts to reinvestment over the medium term.

Low Return on Equity

ROE near 1.5% signals limited effectiveness in converting shareholder capital into earnings. Persistently low ROE can deter long-term investors, restrict valuation upside from fundamentals, and reflect structural limits in profitability unless management improves monetization or cost structure.

Entertainment Network (India) Limited Business Overview & Revenue Model

Company Description

Entertainment Network (India) Limited, together with its subsidiary, operates FM radio broadcasting stations in India and internationally. As of March 31, 2021, it operated 73 stations in 63 cities under the brand names of Radio Mirchi, Mirchi Love, Mirchi 95, and Kool FM, as well as online radio stations. The company was incorporated in 1999 and is based in Mumbai, India. Entertainment Network (India) Limited is a subsidiary of Bennett, Coleman & Company Limited.

How the Company Makes Money

ENIL generates revenue primarily through advertising sales on its radio platforms, with a significant portion of its income coming from brands and advertisers seeking to reach a broad audience. The company offers various advertising solutions, including on-air promotions, sponsorships, and digital advertising through its online platforms. Additionally, ENIL benefits from partnerships with businesses for event sponsorships and promotions, capitalizing on its strong brand presence. The growth of digital media and the increasing consumption of audio content have also contributed positively to its revenue streams, allowing the company to explore new monetization avenues in the evolving media landscape.

Entertainment Network (India) Limited Financial Statement Overview

Summary

Entertainment Network (India) Limited shows a positive revenue growth trajectory and improved operational efficiency, as evidenced by the improved EBIT margin. The balance sheet is stable with low leverage and high equity ratios, although the return on equity is low. Cash flow generation has faced challenges, but the company maintains a healthy cash flow to net income ratio.

Income Statement

The company's revenue has shown a steady growth trajectory over the years, with a significant revenue growth of 6.2% in the most recent year. The gross profit margin is strong at 42.1%, indicating efficient cost management. However, the net profit margin is low at 2.0%, suggesting high expenses or other financial pressures impacting the bottom line. The EBIT margin has improved significantly to 42.1% from previous losses, reflecting operational improvements.

Balance Sheet

The balance sheet appears stable with a debt-to-equity ratio of 0.23, indicating conservative leverage levels. The company has a solid equity ratio of 65.1%, showcasing financial stability and strong asset backing. However, the return on equity is relatively low at 1.5%, suggesting limited efficiency in generating profits from shareholders' equity.

Cash Flow

Operating cash flows have decreased significantly compared to the previous year, indicating potential challenges in cash generation. The free cash flow growth rate is negative, showing a decline in free cash flow generation. However, the free cash flow to net income ratio stands at 1.6, which is positive, suggesting the company is still generating cash flow relative to its net income.

Breakdown	TTM	Mar 2025	Mar 2024	Mar 2023	Mar 2022	Mar 2021
Income Statement
Total Revenue	5.56B	5.82B	5.63B	5.03B	3.18B	2.69B
Gross Profit	2.38B	1.52B	1.83B	2.53B	196.12M	1.73B
EBITDA	1.14B	1.17B	1.35B	-616.25M	618.88M	-365.11M
Net Income	116.45M	115.33M	324.82M	-1.65B	-363.02M	-1.11B
Balance Sheet
Total Assets	0.00	11.93B	12.56B	12.01B	11.06B	11.12B
Cash, Cash Equivalents and Short-Term Investments	3.06B	3.06B	3.81B	3.02B	2.29B	2.33B
Total Debt	0.00	1.77B	1.93B	1.97B	2.35B	2.05B
Total Liabilities	-7.77B	4.16B	4.84B	6.09B	3.45B	3.10B
Stockholders Equity	7.77B	7.76B	7.71B	7.46B	7.61B	8.02B
Cash Flow
Free Cash Flow	0.00	189.68M	1.11B	812.57M	317.81M	213.56M
Operating Cash Flow	0.00	255.36M	1.27B	1.14B	404.48M	307.58M
Investing Cash Flow	0.00	-304.07M	-381.27M	-599.11M	61.63M	126.21M
Financing Cash Flow	0.00	-469.69M	-397.14M	-429.94M	-450.74M	-369.14M

Entertainment Network (India) Limited Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 118.50
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:ENIL, the sentiment is Negative. The current price of 118.5 is above the 20-day moving average (MA) of 108.84, above the 50-day MA of 112.71, and below the 200-day MA of 136.74, indicating a bearish trend. The MACD of -2.31 indicates Positive momentum. The RSI at 40.87 is Neutral, neither overbought nor oversold. The STOCH value of 29.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:ENIL.

Entertainment Network (India) Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
UFO	70 Outperform	₹2.69B	12.58	―	―	5.07%	409.07%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ENIL	55 Neutral	₹5.03B	-21.57	―	1.77%	6.85%	-48.87%
ZEELEARN	55 Neutral	₹1.93B	-22.75	―	―	28.91%	-94.80%
RADIOCITY	49 Neutral	₹2.07B	15.77	―	―	-12.75%	-809.36%
STCINDIA	48 Neutral	₹6.62B	11.60	―	―	―	―
NDTV	45 Neutral	₹8.97B	-2.37	―	―	19.53%	-138.48%