Buy Aarti Industries, prefer Jagran Prakashan: Kunj Bansal

Kunj Bansal of Centrum Wealth Management told CNBC-TV18, "Valuation has to be seen in the context of the market when Jagran Prakashan has risen 20 percent in last three months, which is where Jagran Prakashan and AArti Industries are currently trading at a forward price to earnings (P/E) of around 12-13. Of course there are in different segment, so one cannot necessarily compare their P/E ratios. However, having said that, Aarti Industries particularly has a return on equity (ROE) of 25 percent; margins closer to 20 percent. It is a speciality chemical company, the whole sector has got re-rated, that is where it becomes a clear buy in terms of financials and valuations." "Largely so is the case with Jagran Prakashan. Print media, especially the Hindi print media is likely to get benefited by the Uttar Pradesh (UP) elections that are due next year. In addition to the fact that if one is banking on the overall monsoon recovery, we see the AD spend increasing by FMCG companies, by two-wheeler companies. E-commerce companies have already been spending a lot, so these will be the kickers that will come to print media," he said.