Entertainment Network (India) Limited

Communication Services — Broadcasting · NSE

₹91.35+₹1.10 (+1.22%)

DalalBaazaar Score

49 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by the company is currently loss-making, micro-cap size, which brings thin liquidity, falling profits.

In simple words: The company is currently losing money, but sales are shrinking. The direction of profits is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:46 pm

Understanding the Business

Company site ↗

The 60-second version of Entertainment Network (India) Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Entertainment Network (India) Limited, together with its subsidiary, operates FM radio broadcasting stations in India and internationally. The company operates radio channels, including radio mirchi, mirchi 95, mirchi love, and kool fm.

IndustryBroadcasting

SectorCommunication Services

Employees789

Annual revenue₹557 Cr

How does it make money?

Turns over ₹557 Cr a year. Of every ₹100 of sales, about ₹-1 reaches shareholders as profit, with ₹12 left at the operating level before interest, tax and depreciation. Each of its 789 employees supports ₹70.6 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹70.6 lakh

Who are its competitors?

The closest listed comparisons in its industry are BHARTI AIRTEL LIMITED, VODAFONE IDEA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of -1.8% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

Peer median ROE20.2%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +11% while net margin moved -96% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+11%

Margin effect-96%

DalalBaazaar Score

49/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✓ ROE has improved by 26.8 points over the period

Quality vs. Valuation

Company Quality

48/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

49/ 100

Fair

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

vs. its own history

Not enough price and earnings history

vs. sector peers

Not enough peers with a usable P/E

vs. generic bands

N/A

No P/E — the company is lossmaking

EV/EBITDA

8.4x

PEG

—

What's Good / What's Bad

🟢 What's Going Well5

Margins are improving
EBITDA margin is up from -14.8% to 12.2% over 3 years.
Debt is being paid down
Total debt is down 13% over 3 years.
Return on equity is rising
ROE has improved from -27.8% to -1.0%.
Return on capital is rising
ROCE has improved from -19.5% to -1.8%.
Very low debt
Debt/Equity of 0.23x leaves the balance sheet with plenty of headroom.

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Thin interest coverageFinancial
Operating profit covers interest only -1.2x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹8 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 2.3x to -1.2x.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from -14.8% to 12.2%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹69 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.

🔴 Bear CaseWhat could go wrong?

Growth barely outpaces inflation
Revenue compounding at 3.5% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
Size brings its own risk
Micro Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.
Several serious flags at once
2 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 10%✓ 12.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.5x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ -1.2x
How much operating profit can fall before interest stops being comfortably covered.
4Revenue growth stays above 4% a year✗ 3.5% CAGR
Latest reported year was -2.8%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
5Free cash flow remains positive✓ ₹69 Cr
Profit that never becomes cash eventually stops being profit.

Investment Checklist

5 / 11 checks passed

✗ Strong return on equity (ROE ≥ 15%)
✗ Strong return on capital employed (ROCE ≥ 15%)
✗ Healthy net margin (≥ 10%)
✓ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✗ Revenue growing year-over-year
✗ Profit growing year-over-year
✓ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 1 neutral · 6 weak

Market Cap

₹435 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

Not meaningful

Loss-making

Earnings are negative, so a P/E multiple can't be read here

P/B Ratio

0.57x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.72

Loss-making

Negative earnings per share — the business is losing money

ROE

-1.0%

Weak

Weak capital efficiency

ROCE

-1.8%

Weak

Low return on total capital employed

Debt/Equity

0.23x

Low

Conservative leverage

Revenue Growth (YoY)

-2.8%

Shrinking

Sales are contracting

Profit Growth (YoY)

-166.4%

Falling

Profits are shrinking

Dividend Yield

2.19%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹69 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

9.1x

Operating Margin

-11.1%

Weak

Thin margins leave little room for error

Net Margin

-1.5%

Weak

Very little revenue reaches the bottom line

Current Ratio

1.86

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.30

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

94.5 / 98.9

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.6

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹503 Cr	₹525 Cr	₹540 Cr	₹557 Cr	+3.5%
EBITDA	-₹74 Cr	₹120 Cr	₹98 Cr	₹68 Cr	—
EBITDA Margin	-14.8%	22.8%	18.1%	12.2%	—
PAT (Net Profit)	-₹165 Cr	₹32 Cr	₹12 Cr	-₹8 Cr	—
EPS	₹-34.58	₹6.81	₹2.42	₹-1.61	—
ROE	-27.8%	4.2%	1.5%	-1.0%	—
ROCE	-19.5%	5.9%	3.5%	-1.8%	—
Total Debt	₹197 Cr	₹193 Cr	₹177 Cr	₹171 Cr	-4.6%
Free Cash Flow	₹106 Cr	₹111 Cr	₹19 Cr	₹69 Cr	-13.3%

🟢 Revenue has grown at 3.5% a year over 3 years.

🟢 EBITDA has turned positive, from -₹74 Cr to ₹68 Cr.

🟢 EBITDA Margin has risen from -14.8% to 12.2% over 3 years (+26.9 pts).

🟢 ROE has risen from -27.8% to -1.0% over 3 years (+26.8 pts).

🟢 ROCE has risen from -19.5% to -1.8% over 3 years (+17.7 pts).

🟢 Total Debt has shrunk at 4.6% a year over 3 years.

🔴 Free Cash Flow has shrunk at 13.3% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹1,206 Cr

Total Liabilities

₹448 Cr

Cash & Equivalents

₹36 Cr

Operating Cash Flow

₹86 Cr

Capex

-₹17 Cr

Shareholding (proxy)

Institutional Holding

8.1%

Insider Holding

74.3%

Corporate Actions

Dividend Rate

₹2

Ex-Dividend Date

18 Sept 2026

Peer Comparison

Company	P/E	ROE
BHARTI AIRTEL LIMITED	39.8x	20.2%
VODAFONE IDEA LIMITED	3.6x	—

Recent News

1 positive1 mixed4 general

ENIL Share Price Near 52-Week Low: Technicals & Valuation

Univest, 30 Sept

Entertainment Network (India) Limited (NSE:ENIL) Will Pay A ₹2.00 Dividend In Three Days

Simply Wall Street, 14 SeptCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Entertainment Network India approves all resolutions at 27th AGM

scanx.trade, 25 Sept

Entertainment Network (India) vs Vertoz vs ABM Knowledgeware

Univest, 13 Oct

Entertainment Network (India) reports consolidated net loss of Rs 4.10 crore in the September 2025 quarter

Business Standard, 05 NovResults

🟡Mixed / dependsA results event. The figures on this page update once the new statements reach the data feed, which usually lags the announcement.

Times Horizon acquires 71.15% stake in Entertainment Network via scheme

scanx.trade, 01 Sept

Watch Items

Revenue growth is negative (-2.8%) on the latest reported period — check if this is one-off or a trend.
Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health

MiddlingBusiness Quality · Valuation

WeakGrowth · Profitability · Risk

Points for each in the Score ↑

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; Revenue growth stays above 4% a year · see Key things to watch ↑