Buy Jagran Prakashan; target of Rs 131: PLilladher

3588 Investors following JagranPrakashan. Share this News with them.

0

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

Buy Jagran Prakashan; target of Rs 131: PLilladher

Prabhudas Lilladher is bullish on Jagran Prakashan and has recommended buy rating on the stock with a target of Rs 131 in its February 1, 2012 research report.

Post your opinion here

 

0

Tweet

Share on Tumblr

RELATED NEWS Accumulate Coal India; target of Rs 390: PLilladher TVS Motor an underperformer: LKP Angel Broking neutral on BHEL ALSO READ See previous views by Prabhudas Lilladher See what other Experts & Brokerages are saying about JagranPrakashan See messages about JagranPrakashan JagranPrakashan BSE | NSE 31/05/12 Are Mutual Funds betting on JagranPrakashan?

Prabhudas Lilladher is bullish on Jagran Prakashan and has recommended buy rating on the stock with a target of Rs 131 in its February 1, 2012 research report.

"Jagran reported strong ad revenue growth of 15% YoY to Rs2.23bn, significantly higher than the growth reported by peers - DB Corp (7% YoY) and HT Media (8.7% in Hindi segment). Growth was entirely driven by increased volumes from national advertisers. Jagran maintained yields while offering innovative activations to large advertisers, leading to national advertising accounting for ~60% of the ad revenues in Q3FY12 (40% for FY11)."

"Circulation revenue recorded a strong 9% YoY growth partly due to an increase in per copy realization. Jagran has raised cover prices of its editions in certain markets 1) where it enjoys a dominant position, 2) where cover prices were close to value of waste newsprint & 3) in territories where their sales have exceeded their budgeted copies. EBITDA margins declined to 26% (31% in Q2FY11) due to steep increase in newsprint costs to 35% of revenues (30% in Q3FY11). Management expects newsprint prices to remain stable, going forward. The INR depreciation led to a mark-to-market exchange fluctuation loss of Rs86.7m net of taxes. Of this, Rs56.7m is due to translation losses on outstanding ECB. Adjusting for forex impact, PAT declined by 4.5% YoY."

"Having focused on yield improvement in Q1FY12, Jagran has used its volume lever to drive growth during the quarter. We expect growth momentum to moderate in Q4FY12 as the headroom for profitable volume growth reduces. However, election-related ads could help support growth. We maintain our EPS estimates and target price of Rs 131 for Jagran. Maintain 'BUY'," says Prabhudas Lilladher research report. 

Bodies Corporate holding more than 50% 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