Aug 03, 2012, 12.32 PM | Source: Moneycontrol.com
Motilal Oswal has maintained neutral rating on HT Media with a target of Rs 90, in its August 1, 2012 research report.
Motilal Oswal (more)
CMD, Motilal Oswal Financial Services (MOFSL) |
“HT Media, we note that 1QFY13 EBITDA performance was broadly in line with our expectations, despite significant revenue shortfall, as the company was able to keep costs under control. HT Media does not expect meaningful inflation in the cost base over the balance of the current fiscal. PAT for the quarter declined 21% YoY to INR407m against our estimate of INR338m. The surprise on PAT was led by higher other income and lower tax rate. Revenue declined 1% YoY/QoQ to INR4.9b (9% below our estimate), mainly driven by a 6% YoY decline in advertising revenue for the English business (second consecutive quarter of decline).”
“We are downgrading our FY13/14 revenue estimates by 7%, given continued pressure on ad revenue in the English segment. While we increase our adjusted PAT estimate for FY13 on lower depreciation and higher other income, our adjusted PAT estimate for FY14 is largely unchanged. The stock trades at 15.5x FY13E and 13.4x FY14E earnings. We revise our stock rating from Sell to Neutral, as valuations have corrected post ~25% decline in stock price in the last two months. Our target price is unchanged at INR90 (~14x FY14E adjusted EPS),” says Motilal Oswal research report.
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