Buy Deccan Chronicle, tgt Rs 168: HDFC Sec

HDFC Securities has maintained buy rating on Deccan Chronicle Holding with target price of Rs 168 in its July 01, 2008 report. "We have revised our EPS estimate downwards by 7.6% in FY09E. DCHL has announced an increase in advertisement tariff across its editions by 30% yoy from April 16t, 2008. With its advertisement rate hike of 30% in Q1FY09, improving Ad: Edit ratio in Chennai and the launch of its Bangalore edition, we expect the company to post a revenue CAGR of 37% for FY08-10E and an earnings growth of 40% for the same period. We maintain our ‘BUY’ rating on the stock with a price target of Rs.168, an upside of 55% from current levels. The stock currently trades at 7.7x and 5.0x our FY09E and FY010E EPS estimates, at a substantial discount to its industry P/E of 15x FY09E EPS respectively" according to HDFC Securities reprot.