Sensex Today | Share Market Live Updates: Sensex drops 450 points, Nifty below

Brokerage firm CLSA has upgraded the rating on the stock to ‘Buy’ from an earlier rating of ‘Neutral’ and also lifted the target price to ₹863 apiece from a previous target price of ₹571 apiece, CNBV-TV18 reported.

Media: After a blockbuster 2QFY24, industry-wide BO collections declined 22% QoQ to ~Rs25.6bn in 3QFY24E. BO collections were weaker on sequential basis due to 1) high base 2) paucity of content in first 45 days and 3) cricket world cup. Accordingly, we expect PVR-Inox to report modest performance with footfalls of 36mn (~24.5% occupancy) and pre-IND AS EBITDA margin of 11.1%. On broadcasting side, ZEEL’s performance is likely to be impacted by continued weakness in ad-environment exacerbated by cricket world cup (shift of ad-spends from GEC towards sports). We expect domestic ad-revenues to decline 2.3% YoY to Rs9.9bn with an EBITDA margin of 10.1%.

Entertainment: Levy of GST on full bet value, persistent headwinds in Kiddopia & Ad-Tech business coupled with modest performance from Nodwin is likely to slow down the growth trajectory for Nazara. However, we expect EBITDA margin to improve to 14.6% due to better cost control. Post recent fund raise, Nazara has cash balance of Rs13.3bn and we believe capital allocation decisions from hereon will be key to re-rating.

Top pick: Despite the delay in merger, ZEEL remains our preferred pick in the media & entertainment space as we expect positive outcome from ongoing negotiations.

Multiplex: Industry wide BO collections stood at ~Rs25.6bn aided by 5 movies viz; LEO, Tiger-3, Animal, Dunki and Salaar that crossed Rs1bn mark during the quarter. In addition, there were movies like Fukrey-3 (NBOC of Rs959mn; released on 28th Sep and hence spill-over happened in 3QFY24), Bhagvanth Kesari (Rs847mn), 12th Fail (Rs538mn) and Sam Bahadur (Rs924mn) that have done well in this quarter.

However, there was paucity of content in first 45 days and accordingly we expect PVR-Inox to report footfalls of 36mn with pre- IND AS EBITDA margin of 11.1%. Given modest performance in 3QFY24; we cut our EBITDA estimates by 4.4% for FY24E and downgrade the stock to ACCUMULATE with a revised TP of Rs1,923 (14x Sep-25 EBITDA).

Broadcasting: We expect ZEEL to report 1.9% YoY fall in top-line to Rs20.7bn, with EBITDA margin of 10.1%. Weak ad-environment and high-base of subscription business (one-time catch up revenue in base quarter) is likely to restrict revenue growth. Though we cut our EPS estimates by ~3-4% over FY24E-FY26E amid slower than expected recovery in ad-revenues we maintain our ‘BUY’ rating on ZEEL with a revised TP of Rs330 (earlier Rs314) as we roll forward our valuation to Sep-25E.

Entertainment: Though we expect Nazara’s top-line to decline 1.1% YoY to Rs3,114mn due to growth challenges in Kiddopia, Ad-Tech and Real Money Gaming business we expect EBITDA margin to improve to 14.6% amid better cost control. We increase our EPS estimate by 2% in FY24E amid improvement in margin but cut our estimates by 5%/3% in FY25E/FY26E. Retain HOLD on the stock with a TP of Rs835.

The Nifty IT index ended 2023 with a good 24% return, driven by higher movement in December. Investor sentiment towards the sector revived with expectations for interest rate cuts by the US Federal Reserve in 2024 getting louder. While the street is looking at the bright side of the story, the optimism needs to result in higher deal conversions and, thus, better revenue growth. But it may help to keep hopes low, for now. (Read on)

The valuations of the Indian stock market seem not only stretched, but India has become the most expensive large market in the world, which may weigh on returns this year, cautions foreign brokerage firm CLSA.

In a report, CLSA noted that Indian equities started 2024 amid extreme bullish sentiment, with top-decile valuations and a record discount to debt yields….