ICICIdirect has maintained 'Buy' on Eros International Media with target price of Rs 220 as against current market price (CMP) of Rs 191 in its report.

Commenting on the investment rationale, the broking firm said, "Eros reported its Q4FY14 numbers wherein the topline was at Rs 3.14 billion, up 48.2% YoY vs. estimate of Rs 2.76 billion on account of higher-than-expected growth in theatrical and satellite revenues.

The EBITDA came in at Rs 736 million due to higher revenue growth and relatively lower cost of movies due to a higher number of medium to low budget releases. In addition, monetisation of its huge movie library over pay TV, innovative box office performance linked satellite rights and preview over premium TV (HBO Defined and HBO Hits) will further reduce its dependence on theatrical revenues, which currently stand at 40%. We expect revenues from TV licensing to grow at 14% CAGR in FY14-16 to reach Rs 3.52 billion in FY16E.

The company reported a PAT of Rs 414 million, which could have been higher but for the high interest costs of Rs 145 million on account of higher debt and lower interest income. We expect consolidated revenue growth of 14.6% over FY14-16E and PAT CAGR over FY14-16E of 12.5%." 

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