Motilal Oswal neutral on HT Media; target Rs 107
Brokerage house Motilal Oswal has maintained a neutral rating on HT Media with a target price of Rs 107 in its July 24, 2013 research report.
July 26, 2013 / 12:04 IST
Motilal Oswal's report on HT Media
HT Media's 1QFY14 net profit grew 17 percent YoY and 18 percent QoQ to INR475m (est INR399m). While Revenue/EBITDA were 3/4 percent above estimate, relatively higher PAT surprise was supported by lower-than-expected depreciation/minority interest and higher other income.Ad revenue grew 10 percent to INR4.1b (8 percent YoY increase in English; 14 percent in Hindi) while circulation revenue increased 16 percent YoY to INR608m (25 percent in English; 12 percent in Hindi).Revenue increased 10 percent YoY to INR5.4b (3 percent above est). Ad revenue for English was broadly in-line but Hindi was 8 percent above estimates.EBITDA increased 16 percent YoY to INR779m (4 percent above est) on increased revenue. Operating costs grew 9 percent YoY and 8 percent QoQ.RM costs declined 1 percent YoY but increased 7 percent QoQ to INR1.76b (32.5 percent of revenue).Net cash stands at ~INR6.8b.Valuation and View: "While Hindi ad growth was above estimates, English ad growth was broadly in-line (grew 8 percent YoY on a negative base). We remain positive on the regional business (HMVL); however we note that growth as well as EBITDA margin ex-Hindi remains sluggish (down ~180bp YoY to ~10.6 percent). We are upgrading our EBITDA estimates by 4-5 percent and EPS by 8-9 percent. The stock trades at a P/E of 12x FY14E and 11.3x FY15E. Maintain Neutral with a revised target price of INR107 based on ~12.5x FY15E EPS," says Motilal Oswal research eport.Disclaimer: 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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