Moneycontrol PRO

Buy D B Corp; target of Rs 251: Dolat Capital

Dolat Capital is bullish on D B Corp has recommended buy rating on the stock with a target price of Rs 210 in its research report dated July 18, 2019.

July 19, 2019 / 02:51 PM IST
 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

Dolat Capital's research report on D B Corp


Revenue disappointment, but lower opex drives EBITDA: Consol. revenue declined 4% YoY to INR6.1b (9% miss) due to weak print ad growth (-5% YoY) and lower circulation revenue (-2% YoY). However, consol. EBITDA increased 4% YoY to INR1.8b (14% miss), benefiting from a 6%/12% drop in newsprint/SG&A cost, partly due to Ind-AS 116 cost reallocation of INR85m (exhibit 4). PAT declined 4% YoY to INR937m (22% miss) owing to (a) lower other income and (b) reallocation and higher cost of depreciation/interest cost of INR92m based on Ind-AS 116. Radio segment performance was the only silver lining with healthy revenue/EBITDA growth of 19%/84% YoY.


Outlook


Our target price stands at INR210 (prior: INR215) - ascribing 10x (~40% discount to three-year average) P/E on FY21E EPS. Despite the cut in earnings, PAT is estimated to grow at 12%/19% in FY20/21, given the sharp reduction in opex. Maintain Buy.


For all recommendations report, click here

Close

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.

Broker Research
first published: Jul 19, 2019 02:51 pm

stay updated

Get Daily News on your Browser
Sections
ISO 27001 - BSI Assurance Mark