Moneycontrol PRO
Upcoming Event:Attend Quants League - 5 Days Live Algorithmic Options Trading Virtual Conference @ just Rs. 600/- brought to you by Moneycontrol Pro. Register Now!

Hold DB Corp; target of Rs 395: ICICI Direct

ICICI Direct is bullish on DB Corp has recommended to hold rating on the stock with a target price of Rs 395 in its research report dated November 01, 2017

November 06, 2017 / 01:30 PM IST
  • bselive
  • nselive
Todays L/H

ICICI Direct's research report on DB Corp

Overall revenues at Rs.  568.3 crore (up 7.5% YoY) were largely in line with our estimate of Rs.  554.5 crore. Print advertisement revenues came in at Rs.  350.3 crore, up 6.1% YoY and higher than our expectations of 5% YoY growth. We note that print ad growth of 6.1% YoY, despite pre GST led uncertainty, is noteworthy and bodes well for the company. The radio ad growth continued to outperform print at 16.7% YoY (Rs.  34.9 crore) vs. our estimate of 9% YoY growth. Digital revenues, which declined 12.1% YoY, were disappointing. Subscription revenues came in at Rs.  127.3 crore, up 8% YoY, and higher than our estimates of 6.0% YoY growth.

Print players continue to face challenges such as demonetisation overhang (more impact owing to larger proportion of local advertisers and impacted segments) along with uncertainty on GST, RERA. We believe the revival will be a gradual process. The management not putting a guidance for ad growth is a testimony to the same. We now build in higher costs given the company’s intent to increase circulation copies in Bihar and other costs related to “15 crore Jeeto offer”. We value the company at 15x FY19E EPS of Rs.  26.4 with a target price of Rs.  395. We have a HOLD recommendation on the stock.



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.
first published: Nov 6, 2017 01:30 pm

stay updated

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