Geojit is bullish on Jagran Prakashan has recommended buy rating on the stock with a target price of Rs 190 in its research report dated February 21, 2018.
Geojit's research report on Jagran Prakashan
Jagran Prakashan Ltd (JPL) is a media house with interests spanning across printing and publication of newspapers & magazines, Radio and Digital & Outdoor Advertising. The group publishes 8 newspapers and 2 magazines. Dainik Jagran with its long-standing presence and focus on providing local content has enabled it to command a dominant position in the country’s Hindi speaking regions. JPL’s advertisement revenue excluding Radio grew at a CAGR of 8% over FY13-17 driven by better yields and increased volumes. We expect overall advertisement revenue to grow at a CAGR of 7% over FY17-20E. Given its leadership position, we expect Radio business to register a strong CAGR of 14% driven by robust growth in the sector, strong listenership base and presence across major cities. Overall, we model revenue CAGR of 7% over FY17-20E driven by growth in advertisement and circulation revenue. We project EBITDA margins to expand by 10bps to 28.1% by FY20E led by strong margin expansion in Radio business coupled with robust margin in Dainik Jagran.
Outlook
We recommend ‘BUY’ rating on the stock with a target price of Rs.190 based on SOTP methodology. We value the core business at 13x FY20E and radio business at 25x FY20E earnings.
For all recommendations report, click here
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