Small cap penny entertainment stock surged after quarterly result declared; do you hold it?

The company has announced an interim dividend and over the past six months shares of the company have provided a staggering return of 52.49 per cent

Music Broadcast Limited is a subsidiary of Jagran Prakashan Ltd which runs radio channel Radio City. Being the first FM radio broadcaster in India and with over two decades of expertise in the radio industry has declared their quarterly financial results yesterday for Q3FY24 after the market closure.

Talking about the financial results for the quarter Q3FY24 total income of the company rose by 11 per cent YoY to Rs 66.2 crore compared to Rs 59.9 crore from the previous year’s same quarter. On a sequential basis, income increased by 14 per cent from Rs 58.2 crore. For the Q3FY24 EBIDTA increased by 5 per cent and stands at Rs 15.3 crore from Rs 14.5 crore in the previous year’s same quarter. On a sequential basis it increased by 27 per cent from Rs 12.1 crore.

Profit after tax (PAT) showed a decrease of 37 per cent and stands at Rs 2.6 crore from Rs 4.1 crore in the previous year’s same quarter. This decrease came after company has paid Interest on NCRPS this quarter which was not paid in Q3FY23. On a sequential basis, net profit increased by 602 per cent from Rs 0.4 crore. The company has declared an interim dividend of 0.1 per cent of the face value of Rs 10 each, amounting to Rs 0.01. The record date is set to be February 2, 2024.

Some of company major highlights:

• Q3FY24 digital revenue has grown by 27 per cent over Q3FY23
• Second Highest client count share in the industry with 40 per cent in 9MFY24
• Maintained a strong Position with 19 per cent Volume Market Share in 9MFY24

In the last trading session, the stock closed at Rs 18.49. Today, it opened at Rs 17.01 and currently trading at Rs 19.28, up by 4.27 per cent. Company 52 week high stands at Rs 21.79, while its 52-week low stands at Rs 9.55. Currently company boast market capitalization of approximately Rs 660 crore. Over the past six months the company's shares have provided staggering return of 52.49 per cent.