Buy HT Media; target of Rs 166: PINC Research

2412 Investors following HT Media. Share this News with them.

0

Like this story, share it with millions of investors on M3

Buy HT Media; target of Rs 166: PINC Research

PINC Research is bullish on HT Media and has recommended buy rating on the stock with a target of Rs 166 in its January 20, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Sell Lupin on rallies; Buy Maruti on dips: GEPL Capital Hold Hero MotoCorp; target Rs 2085: Way2Wealth Accumulate Syndicate Bank; target Rs 99: Angel Broking ALSO READ See previous views by PINC Research See what other Experts & Brokerages are saying about HT Media See messages about HT Media HT Media BSE | NSE 31/05/12 Are Mutual Funds betting on HT Media?

PINC Research is bullish on HT Media and has recommended buy rating on the stock with a target of Rs 166 in its January 20, 2012 research report.

"HT Media registered a top-line of Rs5.3bn (13.2%YoY) better than our expectation (PINCe Rs5.1bn) wherein Ad revenue witnessed growth of 10%YoY to Rs 4bn (with English ad revenue growing 11%YoY as against Hindi ad revenue at 8%YoY). Circulation revenue registered de-growth of -0.8%QoQ (7%YoY) with English circulation de-growth of 5%QoQ (remained flat YoY) to Rs503mn in Q3FY12. Raw material costs increased 13%YoY mainly due to higher newsprint consumption and rupee depreciation. OPM declined from 19% in Q3FY11 to 14.7% in Q3FY12 primarily due to Rs100mn forex loss and Rs75mn one-off item (provision for diminution in value of investment)."

"Ad revenue (77% of total revenue) grew by 10%YoY to Rs4bn (10% growth sequentially). Higher growth was mainly on account of the English ad revenue (75% of total Ad revenue) which grew by 10.7%YoY (18.5% QoQ). Hindi Ad revenue was disappointing, as it registered single digit growth of 8%YoY. Circulation revenue growth was muted at 1%QoQ (7% growth YoY) to Rs503mn. Radio segment revenue de-grew 3.3%YoY to Rs174mn from Rs180mn (reported EBITDA of Rs0.1mn vs Rs39mn in Q3FY11). HT-Burda JV, reported revenue of Rs226mn with EBITDA of loss Rs17mn (Rs315mn revenue and EBITDA Rs5mn in Q2FY12). The internet business witnessed a revenue growth of 41% to Rs117mn. Raw material cost escalated 14%YoY, mainly on account of increased consumption and higher news print prices along with impact of the rupee depreciation. Forex loss of Rs100mn and provision of Rs75mn on account of diminution in value of investments lowered operating profit growth. Resultant OPM was down 430bps to 14.7% from 19% in Q3FY11."

"We believe, HT Media is uniquely placed to capture growth opportunities across the media platforms - Hindi print, English print, Radio and Internet portals. At CMP, the stock is trading at 14xFY13E EPS. We reiterate our BUY recommendation on the stock with a revised target price of Rs 166 at 18xFY13E EPS," says PINC Research report.

FIIs holding more than 30% in Indian cos

Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

To read the full report click on the attachment