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Hold HT Media; target of Rs 120: Emkay

Emkay Global Financial Services has recommended hold rating on HT Media with a target price of Rs 120, in its research report dated October 16, 2014.

November 11, 2014 / 05:25 PM IST
 
 
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Emkay's report on HT Media


Revenue at Rs5.6bn (+5% yoy) and EBITDA at Rs721mn (+12% yoy) with EBITDA margin of 12.9% (+82bps yoy). RPAT at Rs439mn (-25% yoy) was impacted by lower other income


Print advt. revenue growth of 9% yoy was better than estimate. English/Hindi ad revenue grew 7%/12% yoy. Circulation revenue growth of 12% continued to remain healthy


We estimate 7%/10% advt. growth for FY15/16E. Uptick in ad growth and softening of newsprint prices to positively impact operating performance


We raise our EPS estimate by 9%/7% for FY15/16E.

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"English ad revenue has seen rebound in Q2FY15 with 7.4% yoy growth. We expect growth to continue in ensuing quarters with improving macro environment. Our estimates factor 4.4%/9% English ad growth for FY15/16E. Softening of newsprint and stable currency would have positive impact on EBITDA going forward. Management expects 1-2% further correction in newsprint prices in Q3 and Q4FY15. At the CMP of Rs110, the stock trades at 13x/10x on our FY15E/16E EPS. We estimate EBITDA/PAT CAGR of 12%/11% over FY14-16E. We value stock at 11x FY16 to arrive at target price of Rs 120", says Emkay Global Financial Services research.


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first published: Nov 11, 2014 05:25 pm

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