The media big on Friday posted a 6.21 per cent decline in standalone web revenue at ₹546.94 crore in Q1-FY25 as in opposition to ₹582.80 crore in Q1 FY23. Topline too dipped 3.16 per cent to ₹1,276.11 crore (₹1,317.78 crore). The corporate declared an interim dividend of ₹5 per fairness share for FY 2024-25. The EBITDA for the quarter stood at ₹706.36 crore (₹786.46 crore).
Downgrading the inventory from Purchase to Impartial, Motilal Monetary Companies mentioned the extended weak point seen inside advert income has hit income progress. Restoration inside advert spends and indicators of revival within the FMCG phase would stay the important thing monitorables for the inventory. “The continued conservative method in direction of investments in OTT, with the main focus remaining on film manufacturing and monetisation of its current library, nonetheless, stays a key danger throughout the fast-growing OTT area,” it additional mentioned whereas setting the goal worth at ₹860.
Solar TV’s share worth has surged 50 per cent previously six months, mentioned Elara Securities. “We consider the core broadcasting enterprise is at the moment buying and selling at a good 17x one-year ahead P/E (largely in step with core broadcasting common ahead P/E of 18x within the pre-Covid period, when income progress was in double digits). That is factoring in low progress prospects (income CAGR of 5.5 per cent in FY25E-27E).”
Elara Securities has downgraded the inventory to Scale back from Purchase as valuations for the core broadcasting are honest, given muted progress prospects. Nonetheless it elevated the goal worth to ₹860 from its earlier projection of ₹800.
Equally, Kotak Institutional Equities downgraded Solar TV from ‘Add’ to ‘Promote, with a revised goal worth of ₹830. “Given the sharp rise within the inventory, the core TV enterprise is now buying and selling at 12X September 2026E earnings, after accounting for ₹9,100 crore valuation for the IPL crew and excluding ₹8,550 crore in money (September 2025E),” the brokerage mentioned.
ICICI Securities bullish
Nonetheless, ICICI Securities and JM Monetary remained bullish on the inventory.
ICICI Securities mentioned, “We worth the inventory at a revised goal worth of ₹1,140 (earlier ₹1,000) based mostly on 20x 1- yr ahead (earlier 17.8), as we roll ahead its valuation by three months. “We consider there may be additional room for re-rating given the tailwinds within the media area; therefore, we preserve Purchase on the inventory,” it mentioned.
In keeping with JM Monetary, regardless of the up-move, the inventory trades at 12x FY26E core EV/PAT – under Zee Entertainments. “Solar TV’s steady operations (54 per cent adj. EBITDA margin), wholesome money era (13 per cent FCF CAGR over FY20-24) and pole place in South India’s TV panorama advantage higher a number of than ZEEL, in our view,” it mentioned including that “We preserve BUY with a revised TP of ₹1,180 (from ₹750).”
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