Buy Jagran Prakashan; target of Rs 169: Angel Broking

Angel Broking's report on Jagran PrakashanFor 2QFY2016, Jagran Prakashan (JPL)’s consolidated top-line grew by 19% yoy, mainly due to strong growth in the advertisement segment. The acquisition of the Radio City business in 1QFY2016 added to the advertising revenue. However, circulation revenue showed lower growth during the quarter. The company reported strong profitability on a consolidated basis due to falling news print costs and with contribution from Radio City.Outlook and valuation: Considering Dainik Jagran’s status as the most read Hindi newspaper in the country and its strong presence in the rapidly growing Hindi markets of Bihar, Haryana, Jharkhand, Punjab, Madhya Pradesh and Uttar Pradesh, we expect JPL to benefit the most from an eventual recovery in the Indian economy. Further, the acquisition of Radio City is also expected to boost the company’s profitability, going ahead. Hence, we maintain our Buy rating on the  stock with a target price of `169, says Angel Brokings research report.For all recommendations, click hereDisclaimer: 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.

Read More