ICICIdirect.com has maintained hold rating on Deccan Chronicle with a target of Rs 69 in its May 17, 2011 research report.
"Deccan Chronicle reported its consolidated results for Q4FY11 which included numbers of Odyssey and Deccan Chargers along with the Print Business. The numbers are not comparable to earlier quarters, but look disappointing with ad revenue de-growth of ~17% YoY. The company wrote off IPL league charges to the extent of ~Rs 44 crore. Deccan Chronicle reported EBITDA loss of Rs 19.9 crore. Management has indicated that the Print business had an EBITDA margin of ~37% in Q4FY11. The company reported net loss of Rs 46.6 crore. Buy back of shares from open market would open from May 16, 2011 to January 3, 2012."
"The company has been underperforming its peers for over three quarters. The management attributed dismal performance to unrest in Andhra Pradesh. Our interaction indicates that it may take 2-3 more quarters before the ad volume returns to earlier levels. At the CMP of Rs 75, the stock is trading at 13.0x FY13E EPS of Rs 5.7. We value the company at 12x FY13E to arrive at a value of Rs 69 per share. Our target price implies a downside of 8%, we maintain HOLD rating on the stock with a target price of Rs 69," says ICICIdirect.com research report.
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