Jagran up 5%; analysts retain buy, UP elections may boost FY17

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26 Aug, 2025 12:21

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Moneycontrol Bureau

Jagran Prakashan shares surged nearly 5 percent intraday Wednesday. Brokerages maintained buy rating on the stock, saying UP elections are likely to drive earnings in FY17.

CLSA has retained buy rating on the stock with increased target price at Rs 209 (from Rs 194), saying it is the top pick in print media after better-than-expected earnings.

The brokerage has upgraded EBITDA (earnings before interest, tax, depreciation and amortisation) by 5 percent for FY17-18, saying print advertising (ad) growth estimate of 11-12 percent YoY can have potential upside as a stronger economic recovery and UP elections may fuel the discretionary ad growth cycle further.

Moreover, margin expansion from past acquisitions could drive further earning upgrades, it adds.

Jagran's FY16 net profit increased 44 percent to Rs 444.7 crore compared to previous year (which was ahead of estimates), driven by good margin performance. Consolidated revenue (ex-radio business) grew by 8 percent YoY, driven by print ad revenue growth which was up 10 percent YoY to Rs 140 crore, (14 percent YoY in Q4) in line with estimates.

Print ad growth was led by the core Uttar Pradesh (UP) market (around 50 percent of revenue), an active local government (new projects, ad campaigns) and an uptick in discretionary spend by consumers across states.

Consolidated EBITDA (ex-radio) increased a higher-than-expected 16 percent YoY to Rs 520 crore, due to 180 basis points YoY expansion in margin to 27 percent, led by 250 bps YoY decline in share of raw material costs in revenues. Adjusted for the radio business, Jagran’s earnings growth was 28 percent YoY to Rs 390 crore.

CLSA says FY16 was the first year of consolidation of Radio City financials, which added Rs 68.2 crore to EBITDA with higher 34 percent margin and Rs 49.8 crore to profit before tax. As a result, on a reported basis, consolidated revenue were up 19 percent YoY, EBITDA was up 31 percent and PAT was up 44 percent.

Jagran's consolidated profit in Q4 fell 38 percent to Rs 80.19 crore due to higher base (exceptional gain of Rs 80 crore) in year-ago period and revenue increased 25.3 percent to Rs 529.5 crore YoY. Standalone profit rose by 22 percent and revenue grew 11.3 percent YoY driven by 13.8 percent YoY ad growth and 8.4 percent YoY circulation revenue spurt.

While addressing conference call post earnings, the company says Radio City is expected to report around 15 percent YoY spurt in FY17, adding while Nai Dunia reported 13.5 percent YoY advertisement growth (10 percent YoY in FY16), Midday reported around 11 percent YoY advertisement surge in Q4FY16.

The company has 2 percent market share (Rs 20 crore revenue in FY16) in digital and is targeting 8 percent market share over the next 5 years.

With maintaining buy rating on the stock and target of Rs 206, Edelweiss says Jagran is set to perform well riding revival in ad environment, turnaround in acquisitions (Midday, Nai Dunia) and scale up of radio business.

At 10:55 hours IST, the scrip of Jagran Prakashan was quoting at Rs 172.10, up Rs 3.20, or 1.89 percent on BSE.Posted by Sunil Shankar Matkar