Moneycontrol PRO

Buy D B Corp; target of Rs 324: Motilal Oswal

Motilal Oswal is bullish on D B Corp has recommended buy rating on the stock with a target price of Rs 324 in its research report dated May 16, 2018.

May 23, 2018 / 03:32 PM IST
  • bselive
  • nselive
Todays L/H

Motilal Oswal's research report on D B Corp

Consol. revenue grew 10% YoY to INR5.7b (1% miss), led by healthy growth in the Print business. Print ad revenue was up 9% YoY to INR3.4b, driven by a revival in adspend. Moreover, a 14% YoY jump in circulation copies to 5.96m drove 9% YoY growth in circulation revenue to INR1.3b. Radio revenue, too, increased 9% YoY to INR360m. Yet, consol. EBITDA fell 13% YoY to INR979m (18% miss), mainly due to a 16% rise in opex. EBITDA margin contracted 445bp to 17.3%. PAT declined 11% YoY to INR571m (17% miss) due to lower EBITDA, partly offset by lower tax. For FY18, consol. revenue rose 3% to INR23.3b (in-line), while EBITDA/PAT fell 12%/14% to INR5.9b/3.4b (4% miss).  Concall highlights: 1) Volumes to account for ~70-80% of total ad revenue growth in FY19. 2) Expect a 12-15% YoY increase in newsprint prices in 1Q/2QFY19. 3) Circulation copies to increase by 6-10% in FY19. 4) FY19 (maintenance) capex to be ~INR500-600m. 5) Management has no plans of any M&A/investment activities.


We reduce our TP to INR324 (INR420 earlier), ascribing 13x P/E on FY20E EPS of INR25 on account of the cut in EPS and attributing a lower multiple due to cost headwinds. However, a revival in ad growth should bode well. Maintain Buy.

For all recommendations report, click here


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

Broker Research
first published: May 23, 2018 03:32 pm

stay updated

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