Buy Jagran Prakashan, tgt Rs 93: Angel Broking

Angel Broking has maintained buy rating on Jagran Prakashan with target price of Rs 93, in its July 02, 2008 report. "During FY2008-10, we expect Jagran to post a CAGR growth of 21.1% in Revenue largely aided by 23.4% CAGR growth in advertising revenues supported by sustained ad rate hikes, higher proportion of colour ads and better inventory utilisation of space sold. In terms of circulation revenues, we expect Jagran to post a CAGR growth of 8% during the period. In terms of Earnings, we expect Jagran to report a CAGR of 23.4% (on reported basis) over FY2008-10 boosted by robust"

"Topline growth and modest Margin expansion. At the operating front, we expect FY2009 to be a tough year for most Print Media companies and similarly expect Jagran to post an 110bp decline in OPM due to rising newsprint prices, depreciating Rupee and losses in its new initiatives. However, FY2010 is expected to witness a recovery in its Margin profile as newsprint prices cool off and sustained ad rate hikes boost Margins. At Rs 65, the stock is trading at attractive valuations of 13.1x FY2010E Earnings and we believe the current underperformance of the stock offers an attractive entry point for investors. We maintain a Buy on the stock, with a revised Target Price of Rs93 (Rs125)" according to Angel Broking report.  

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