Buy HT Media; target of Rs 203: KRChoksey

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Buy HT Media; target of Rs 203: KRChoksey

KRChoksey is bullish on HT Media and has recommended buy rating on the stock with a target of Rs 203 in its September 16, 2011 research report.

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RELATED NEWS Accumulate Marico; target of Rs 150: P Lilladher Buy Rallis India; target of Rs 185: SMC Global ALSO READ See previous views by KRChoksey 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?

KRChoksey is bullish on HT Media and has recommended buy rating on the stock with a target of Rs 203 in its September 16, 2011 research report.

"HT Media announced its result for Q1FY12. Total income was Rs 497cr, a growth of 6% over q-o-q and 23% over y-o-y. EBITDA stood at Rs 90cr, which is up by 3% over Q4FY11 and 13% over Q1FY11. EBITDA margin for the quarter was 18.2%. EBITDA Margin was under pressure due to increase in raw material cost. The company reported net profit of Rs 53cr, which is up by 10% over q-o-q and y-o-y each. Net profit margin for the quarter was 11.3%. Net profit for the quarter was Rs 51.5cr, which is marginally down by 2% on qo- q and up by 25% on y-o-y. In spite of slowdown in real estate and BFSI segment showing degrowth in advertising spent, we believe HT Media will perform ahead of the industry."

"HT Media recorded 17% increase in advertising revenues of print segment to Rs 384.4cr as compared to Rs 329cr driven by advertising yield improvement. Advertising revenues for English segment grew by 18%% from Rs 233cr to Rs 274cr y-o-y. Hindi segment grew by 15%. Ad revenue for this segment stood at Rs 111cr as compared Rs 96cr in Q1FY11. The company witnesses sluggishness in sectors like real estate and BFSI. Circulation revenue of print segment reported a growth of 3% y-o-y to Rs 48.5cr as compared to Rs 46.8cr. The management is confident to see circulation revenue going upward despite stiff competition, with 2-3 new launches planned in H2FY12. This segment recorded growth of 75% to Rs 21.5cr from Rs12.3cr y-o-y. EBITDA stood at Rs 3.4cr as compared to negative EBITDA of Rs 0.01cr in Q1FY11. EBITDA margin for this segment was 16%. There are no plans with respect to Phase III are yet on the cards. However the management is confident about exploiting this opportunity and generates better revenues from this segment going forward."

"HT Burda had revenue of Rs 24.5cr in Q1FY12. This segment was EBITDA positive in this quarter. Currently it is operational at 35%-40%. Considering it is fully operational, the management guided revenue of Rs 200cr. So believe this segment will contribute to higher chunk of revenues in time to come. It reported revenue of Rs 8.6cr as compared to Rs 6.2cr in Q1FY11. Shine.com continues to gain revenue traction. Overall resume database increased to 7mn. HT Mobile is gaining momentum with increase in mobile ad campaigns. HTCampus.com has garnered a database of 24000 institutes and 4 lacs candidates. HT Media's investment in digital business is a long term growth story."

"HT media is a diversified conglomerate with dominance in Hindi and English print segment. The company has strong balancesheet to cater expansion plans. With strong footprint in Hindi belt and expanding presence in English market, HT Media will grow at a healthy rate of 12-15% in next two years. We retain our 'BUY' recommendation on the stock with target price of Rs 203 by assigning 16x PE to FY13E EPS of Rs 12.7. At CMP it gives an upside potential of 47.1%," says KRChoksey research report.

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