Music Broadcast Limited

Communication Services — Broadcasting · NSE

₹5.64−₹0.07 (−1.23%)

DalalBaazaar Score

36 / 100

🔴 Weak

Verdict

CAUTION

Risk

Very High

Driven by high debt relative to equity, the company is currently loss-making, micro-cap size, which brings thin liquidity.

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

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:07 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Music Broadcast Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Music Broadcast Limited engages in the operating of FM radio stations under the Radio City brand name in India. It operates radiocity.in website, and 39 radio stations. The company was incorporated in 1999 and is based in Mumbai, India.

IndustryBroadcasting

SectorCommunication Services

Employees334

Annual revenue₹174 Cr

How does it make money?

Turns over ₹174 Cr a year. Of every ₹100 of sales, about ₹-31 reaches shareholders as profit, with ₹17 left at the operating level before interest, tax and depreciation. Each of its 334 employees supports ₹52.2 lakh of revenue a year, the signature of a people-led business.

EBITDA margin16.9%

Net margin-30.6%

Revenue / employee₹52.2 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.

BHARTI AIRTEL LIMITEDP/E 39.8x · ROE 20.2%

VODAFONE IDEA LIMITEDP/E 3.6x · ROE —

What is its competitive advantage?Little sign of one

Returns on capital of -9.7% 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.

ROCE-9.7%

ROE-12.0%

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 -12% while net margin moved -1867% 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-12%

Margin effect-1867%

DalalBaazaar Score

36/ 100

Weak

Weighted across six categories. Every point is explained below.

✗ Return on equity is negative
✗ ROE has fallen by 12.6 points over the period

Quality vs. Valuation

Company Quality

34/ 100

Weak

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

Valuation

54/ 100

Fair

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

Weak on business quality and not cheap enough to compensate.

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

P/E (Trailing)

Not meaningful

P/B

0.44x

EV/EBITDA

7.4x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well1

Debt is being paid down
Total debt is down 76% over 3 years.

🔴 What Needs Attention3

Margins are compressing
EBITDA margin has slipped from 21.8% to 16.9% over 3 years.
Return on equity is falling
ROE has dropped from 0.7% to -12.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1.5% to -9.7% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴High leverageFinancial
Debt/Equity of 5.31x — earnings must service borrowings before shareholders see anything.
🔴Thin interest coverageFinancial
Operating profit covers interest only -4.6x — little room if earnings dip.
🔴The company is lossmakingFinancial
Net profit of -₹53 Cr in the latest reported year.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from -2.7x to -4.6x.
🟡Margins are compressingFinancial
EBITDA margin is down 4.9 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 76% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 21.8% to 16.9%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Leverage amplifies any setback
Debt/Equity of 5.31x. Interest is payable whether or not the business has a good year.
Returns on shareholder capital are falling
ROE has dropped from 0.7% to -12.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.
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.

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

1EBITDA margin holds above 15%✓ 16.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Interest cover stays above 3x✗ -4.6x
How much operating profit can fall before interest stops being comfortably covered.
3Free cash flow remains positive✓ ₹16 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.8x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 8%✗ -9.7%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

4 / 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

2 good · 2 neutral · 7 weak

Market Cap

₹198 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

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹-1.21

Loss-making

Negative earnings per share — the business is losing money

ROE

-12.0%

Weak

Weak capital efficiency

ROCE

-9.7%

Weak

Low return on total capital employed

Debt/Equity

5.31x

High

High leverage

Revenue Growth (YoY)

-9.7%

Shrinking

Sales are contracting

Profit Growth (YoY)

-57.6%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

₹16 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹5.64

P/E (Forward)

0.4x

Operating Margin

10.9%

Average

Average margins

Net Margin

-24.7%

Weak

Very little revenue reaches the bottom line

Current Ratio

7.04

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.25

Defensive

Steadier than the market

52W Range Position

29%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

5.9 / 6.2

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

27.3

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹199 Cr	₹229 Cr	₹234 Cr	₹174 Cr	-4.3%
EBITDA	₹43 Cr	₹57 Cr	₹52 Cr	₹30 Cr	-12.0%
EBITDA Margin	21.8%	24.9%	22.1%	16.9%	—
PAT (Net Profit)	₹3 Cr	₹7 Cr	-₹34 Cr	-₹53 Cr	—
EPS	₹0.1	₹0.2	₹-0.98	₹-1.54	—
ROE	0.7%	1.3%	-6.8%	-12.0%	—
ROCE	1.5%	3.5%	-5.8%	-9.7%	—
Total Debt	₹98 Cr	₹106 Cr	₹126 Cr	₹24 Cr	-37.8%
Free Cash Flow	₹21 Cr	₹18 Cr	₹4 Cr	₹16 Cr	-7.8%

🔴 Revenue has shrunk at 4.3% a year over 3 years.

🔴 EBITDA has shrunk at 12.0% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.8% to 16.9% over 3 years (-4.9 pts).

🔴 PAT (Net Profit) has turned negative, from ₹3 Cr to -₹53 Cr.

🔴 EPS has turned negative, from ₹0.1 to ₹-1.54.

🔴 ROE has fallen from 0.7% to -12.0% over 3 years (-12.6 pts).

🔴 ROCE has fallen from 1.5% to -9.7% over 3 years (-11.3 pts).

🟢 Total Debt has shrunk at 37.8% a year over 3 years.

🔴 Free Cash Flow has shrunk at 7.8% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹496 Cr

Total Liabilities

₹51 Cr

Total Debt

₹24 Cr

Cash & Equivalents

₹4 Cr

Operating Cash Flow

₹22 Cr

Capex

-₹5 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

79.0%

Peer Comparison

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

Recent News

6 general

Music Broadcast RADIOCITY Demat Special Window Notice Oct 2026

Kalkine India, 12 Oct

SUNTV Stock Price and Chart — NSE:SUNTV

TradingView, 14 Oct

Music Broadcast Share Price Forecast: 3 Year Outlook to 2030

Univest, 21 Jul

ROBOKIDZ EDUVENTURES LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 14 Oct

Music Broadcast posts ₹533.24 crore loss in FY26 amid revenue slide

scanx.trade, 02 Sept

Music Broadcast Standalone March 2026 Net Sales at Rs 40.79 crore, down 25.39% Y-o-Y

Moneycontrol.com, 22 May

Watch Items

Revenue growth is negative (-9.7%) on the latest reported period — check if this is one-off or a trend.
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

🔴Business QualityWeak6.2/20

🟡Financial HealthAdequate11.6/20

🔴GrowthWeak5/20

🔴ProfitabilityWeak2.5/15

🟡ValuationFair7.1/15

🔴RiskHigh3.9/10

Weak on the fundamentals

Poor scores on business quality without a price low enough to compensate. There is no obvious argument for owning this over a stronger company at a similar valuation. 3 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 15%16.9%
✗Interest cover stays above 3x-4.6x
✓Free cash flow remains positive₹16 Cr
✓Debt / EBITDA stays below 2x0.8x
✗ROCE stays above 8%-9.7%