Buy Deccan Chronicle; target of Rs 216: Angel

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Angel Broking is bullish on Deccan Chronicle and has recommended buy rating on the chat with a target of Rs 216, in its December 18, 2009 research report.

"In our note dated September 22, 2009 (Deccan Chronicle: Charged up for second innings), we had outlined our positive stance on Deccan's IPL team stating, 'We remain optimistic on IPL's money-making prospects and any news flow on the stake sale front will trigger a re-rating in the DCHL stock'. Further, we had stated that, 'The next IPL team auction in 2011 is expected to set a benchmark post which DCHL might reconsider its position to dilute stake'. With IPL's recent announcement of auction (slated for January 19, 2010) of two new franchises for the 2011 edition at a base price of US$ 225 million, we believe that the floor is set for DCHL's stock to get re-rated. In our 2QFY2010 result note, we had valued DCHL on a consolidated basis at 12x FY2011E EPS of Rs 12.4 and arrived at a target price of Rs 149. Post this development and roll-over to FY2012E, we upgrade Deccan Chronicle Holdings, DCHL to a Buy, with a revised target price of Rs 216," says Angel Broking research report.

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