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Last Updated : Oct 17, 2019 11:41 AM IST | Source: Moneycontrol.com

DB Corp climbs 4% as CLSA remains bullish on dividend yield potential

DB Corp reported a 9 percent year-on-year decline in consolidated revenue due to 12 percent and 2 percent fall in print advertising and circulation revenue respectively.

 
 
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Shares of DB Corp, the Dainik Bhaskar Group company, rallied 4 percent intraday on October 17 after brokerages remained bullish on the stock despite mixed earnings in September quarter.

The stock added 12 percent in the last one month. It was quoting Rs 157.20, up Rs 4.10, or 2.68 percent on the BSE at 1113 hours.

While having a buy call on the stock as it offers 7 percent dividend yield, global brokerage CLSA slashed its price target to Rs 185 from Rs 220 per share, implying 21 percent potential upside from current levels.

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The company declared an interim dividend of Rs 6.5 per share.

The research house also cut FY20-21 estimates by 2-7 percent and expects 6 percent earnings CAGR over FY20-22.

"Company Q2 revenue disappointed but lower tax cost boosted earnings. Margin may expand further led by continued decline in raw material costs," CLSA said.

DB Corp reported a 9 percent year-on-year decline in consolidated revenue due to 12 percent and 2 percent fall in print advertising and circulation revenue respectively.

Consolidated earnings before interest, tax, depreciation and amortisation (EBITDA) grew 6.6 percent YoY, supported by softening newsprint costs and SG&A expenses YoY.

Subsequently, consolidated EBITDA margin stood at 18.5 percent (up 260bp YoY) on a post-Ind-AS 116 basis while profit grew by 64 percent, majorly due to the benefit from the new corporate tax rate, said Motilal Oswal which also has a buy call on the stock with a target price at RS 200, implying 31 percent potential upside from current levels.

Company's print revenue fell 3 percent while radio revenue declined 16 percent YoY.

Disclaimer: The above report is compiled from information available on public platforms. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.

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First Published on Oct 17, 2019 11:41 am
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