For the quarter ended Sept 2017, Jagran Prakashan Ltd. reported a fall in profitability with net profit contracting by 19% YoY to Rs 61 cr and 22% sequentially.
Valuations: Media industry which thrives on discretionary spends was impacted in this quarter too due to slow recovery from newer reforms like GST. The overall performance of the company couldn’t withstand this unusual economic condition and reported decline in net profit by 19% due to low single digit growth in advertisement revenue and circulation revenues. At CMP of Rs 169 per share the stock is trading at P/E and P/BV multiple of 10.8(x) and 2.4(x) respectively of FY19E. We have valued the stock at P/E multiple of 11(x) to FY19E and have arrived at fair value of Rs 171 per share. We have Neutral rating for the stock.
Subscribe to newsletter
Request a call back
DISCLAIMER: Investment in markets is subject to market risk, the views and investment tips expressed by our research entity on arihantcapital.com are product of their own. Whilst meticulous care has been taken to ensure that the facts stated are accurate and opinions given are fair and reasonable, neither the analyst nor any employee of our company is in any way is responsible for its contents and nor is its accuracy or completeness guaranteed. ArihantCapital.com offers the views and opinions for assistance only and these are not intended and must not be alone taken as the basis for an investment decision. We advise the users to check with certified experts before taking any investment decisions. The investments discussed in this material may not be suitable for all investors. The recipient alone shall be fully responsible/are liable for any decision taken on the basis of this material.