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Monday, December 8, 2008

Entertainment Network India (ENIL) - Music in your Investment portfolio?

Entertainment Network India (ENIL), better known as Radio Mirchi, is the largest private sector player in the FM radio business.

Scripscan:Entertainment Network India (ENIL)
Cmp:108
Traded in:Nse-Bse


THE main business of ENIL is FM radio, where it operates in 32 radio stations at the moment under the Radio Mirchi brand.It is a leader in terms of number of operating stations and listeners. It is the only private FM station with presence in the metros.The radio business is a huge growth business with good prospects.



ENIL is also in the business of event management and out-of-home media through the brands 360 Degrees and Times Out-of-Home Media. RADIO advertising spends are poised for healthy growth from two counts – higher share of the overall pie and growth in overall ad spends in India. Radio's share will rise due to a favourable policy environment.

The government has radically changed its outlook towards private radio.After relaxing licensing rules to a moderate revenue share, it is also allowing a huge network expansion.Government approval of TRAI's recommendations for the radio sector on hiking the FDI limit, allowing operators to operate multiple channels within a city and permitting the broadcast of news, are likely triggers for the stock.

Given the strong growth prospects ahead of the company, this looks an attractive bet.The company has got a presence in all key markets and enjoys a leadership position in most.In the radio segment it has got a market share of nearly 48%.Radio as yet accounts for only 3 per cent of the advertising pie but its set to increase as the demand grows.Its such a great monopoly business and being the only listed player it would always command a high valuation.The outdoor media and the events management business is growing rapidly too.

All these factors make ENIL a good stock to own & Invest.

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