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Decent performance…

About the stock: TV Today Network (TV Today) is a leading news company engaged in broadcasting operations. Part of the India Today Group, the company operates mainly in three segments—digital, television and radio broadcasting.

* It has maintained its leadership in Hindi new segment across the last two decades.

Q2FY22 Results: TV Today’s performance was better than expected.

* Topline came in at | 226 crore, up 27.9% YoY. TV broadcasting revenues came in | 181.9 crore (up ~27% YoY). We note that its growth was much ahead of its key peer - TV18’s news business which reported ~18% YoY growth in news segment. Radio revenues were at | 3.1 crore, up 226% YoY growth on washout base. The digital segment continued its growth momentum with 31% growth YoY to | 41 crore

* Reported EBITDA came in at | 59.6 crore, up 44.7% YoY led by superior revenues while EBITDA margins came in at 26.4% (up 306 bps YoY)

* PAT grew 69% YoY to | 47 crore aided by superior operating performance

What should investors do? TV Today’s share price has underperformed with decline of ~8% over past five years.

* We maintain our HOLD rating

Target Price and Valuation: We value TV Today at | 350 i.e. 10x FY23E EV/EBITDA.

Key triggers for future price performance:

* Viewership measurement changes by BARC, as the rating are suspended since last year

* Any election benefits from states such as UP and Punjab

* Viewership market dynamics especially with launch of new Hindi news channels by competitors.

Alternate Stock Idea: Besides TV Today, we like Inox in the media space.

* A play on reopening and improving market share of multiplexes

* BUY with a target price of | 495

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