Hold HT Media; target of Rs 86: ICICI Direct
ICICI Direct has recommended hold rating on HT Media with a target price of Rs 86 in its October 29, 2015 research report.
October 30, 2015 / 14:35 IST
ICICI Direct’s report on HT Media> HT Media reported better-than-expected ad growth in the Hindi print segment, up 18.2% YoY at Rs 168.1 crore vs. our expectation of 16.0% YoY growth with traction in Uttar Pradesh and Bihar. English ad revenues were subdued with 0.4% YoY de-growth to Rs 276.8 crore while circulation revenues grew 5.2% YoY to Rs 75.4 crore. Digital revenues grew 36.0% YoY to Rs 33.9 crore while radio registered a 20.5% YoY growth to 29.3 crore aiding the topline growth, which was up 7.3% YoY to Rs 601.6 crore> Higher revenues led to better-than-expected EBITDA of Rs 62.7 crore despite higher employee expenses. Margins came in at 10.4% vs. expectations of 9.3% and down 244 bps YoY> PAT came in at Rs 36.4 crore (vs. estimate of Rs 26.3 crore) due to higher other income at Rs 45.6 crore and beat at the EBITDA levelGradual ad revival, phase III stations revenue potential remains to be seenEnglish print is yet to gain traction with ad growth momentum yet to gain tempo. Also, the revenue potential from the Phase III second frequencies remains opaque. We also await clarity on the company’s strategy of optimising its capital structure. We continue to maintain HOLD, valuing it at 11x FY17E EPS of Rs 7.8, at a revised target price of Rs 86.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. 
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