Buy DB Corp; target of Rs 430: ICICI Direct
ICICI Direct has recommended buy rating on DB Corp with a target price of Rs 430 in its research report dated July 21, 2017.
July 25, 2017 / 03:28 PM IST
ICICI Direct’s research report on DB Corp
Overall revenues at | 594.3 crore (up 4.2% YoY) were largely in line with our estimate of | 593.5 crore. Print advertisement revenues came in at | 390.3 crore, up 4.5% YoY and slightly higher than our expectations of 4% YoY growth. We note that print ad growth of 4.5% YoY on a high base of 20.9% growth seen in Q1FY17 is encouraging despite pre - GST led uncertainty, which had impacted ad revenues across media . Radio ad growth continued to outperform print at 11% YoY (| 31. 2 crore). Digital revenues, which declined 1.6% YoY, were disappointing. Subscription revenues came in at | 123.4 crore, up 4.9% YoY, slightly below our estimates of 7.2% YoY growth.
We also highlight that DB enjoys a superior return ratios profile among its peers. We value the company at 1 6 x FY1 9 E EPS of | 2 6. 9 at a target price of | 430 and assign a BUY rating to the stock.
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