Buy Jagran Prakashan; target of Rs 70: ICICI Direct
ICICI Direct is bullish on Jagran Prakashan recommended buy rating on the stock with a target price of Rs 70 in its research report dated Jun 01, 2021.
June 10, 2021 / 12:22 PM IST
ICICI Direct's research report on Jagran Prakashan
Jagran Prakashan reported a weak set of Q4FY21 numbers. Operating revenue (consolidated) declined 8.8% YoY to Rs 406.4 crore as print ad revenue was down 10.7% YoY to Rs 234 crore. Subscription and radio revenue also registered de-growth of 12.1% YoY and 7.4% YoY, respectively on a depressed base. EBITDA, however, was up 66.6% YoY to Rs 89.9 crore. EBITDA margins were at 22.2%, up ~1000 bps YoY. Cost control measures and softened newsprint prices helped EBITDA despite weak revenues. Consequently, PAT at Rs 37.6 crore grew more than 3x YoY due to strong performance at EBITDA level and also higher other income.
We maintain BUY rating with a revised target price of Rs 70, at 8x FY23 P/E (earlier TP: Rs 55/share).
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