Get App
Moneycontrol

Co-Partners

Associate Partners

Last Updated : May 17, 2019 12:26 PM IST | Source: Moneycontrol.com

Buy D B Corp; target of Rs 215: Motilal Oswal

Motilal Oswal is bullish on D B Corp has recommended buy rating on the stock with a target price of Rs 215 in its research report dated May 16, 2019.

Broker Research @moneycontrolcom
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Motilal Oswal's research report on D B Corp


4QFY19 was characterized by EBITDA margin expansion as against the steep 880bp/210bp YoY drop witnessed in 2QFY19/3QFY19. Consol. EBITDA at INR1b grew 6% YoY (5% beat), while margin expanded 20bp to 17.7%. This was due to a modest 5% YoY increase in cons. revenue to INR5.9b (in-line) coupled with a deceleration in YoY increase in RM cost, up 14% YoY (as against steep 30-35% YoY increase witnessed in 2QFY19/3QFY19). Also on QoQ basis, RM cost declined 12%, indicating a reversion of newsprint prices to normal levels (despite an increase in circulation copies). Yet, PAT declined 5% YoY to INR545m (3% miss) as growth in EBITDA was outweighed by drop in other income (-65% YoY) and higher taxes. For FY19, revenue/EBITDA/PAT grew 6%/-11%/-15%.


Outlook


We value DBCL with a target price of INR215 – ascribing 9x (~40% discount to three-year average) P/E on FY21 EPS. We believe the revival in earnings driven by softening newsprint prices is not fully captured in the valuation. Maintain Buy.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



Get Lok Sabha 2019 Live Election Results, constituency-wise tally, news, views and analysis
Follow our Lok Sabha Election Result Live Blog here.
First Published on May 17, 2019 12:26 pm
More From
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant