Motilal Oswal is bullish on Jagran Prakashan has recommended buy rating on the stock with a target price of Rs 215 in its research report dated January 31, 2018.
Motilal Oswal's research report on Jagran Prakashan
Consol. revenue came in flat YoY at INR5.98b (2% beat), as a drop in print ad revenue was offset by growth in other segments. Consol. EBITDA declined 13% YoY to INR1.6b (5% beat) due to a 9% YoY rise in SGA expenses, with the margin contracting 380bp YoY to 27.2% (~70bp beat). The impact, however, was partly mitigated by a 15% YoY decline in interest cost and a 38% YoY rise in other income. PAT fell 13% YoY (+22% QoQ) to INR848m (5% miss).
OutlookWe believe easing of GST hiccups should also bode well. We roll forward our valuation to Dec-19E, assigning 15x EPS (three-year average P/E) to arrive at a TP of INR215 (v/s 225 earlier). Maintain Buy.
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