What makes DB Corp, a print media player, a worthy bet despite rising digitisation?
September 12, 2019 / 04:16 PM IST
PRO Only Highlights
Quarterly performance largely backed by improved realisations
Medium-term triggers China plus and protectionist measures for tyre industry
Valuations not inexpensive; but improved medium-term outlook
Print media stocks have been under pressure for quite some time. The stock of DB Corp, one of the largest newspaper companies, has seen a huge de-rating in the past decade, with the one year forward price-to-earnings (P/E) multiple contracting from a peak of above 20 in FY10 to below 10 in FY19.
Despite enduring multiple challenges, DB Corp’s financials are still reasonable with mid-teen return on equity (RoE), no long-term debt and high dividend yield.
One may then attribute...