Buy Jagran Prakashan at CMP | Investment Idea: Jagran Prakashan | Fundamental Analysis for Jagran Prakashans | Indianotes.com


Synopsis


– Jagran Prakashan Limited is a media conglomerate with interests spanning across printing and publication of newspapers & magazines, F M Radio, Digital, Outdoor Advertising and Promotional marketing / Event management / on ground activation businesses.


– Revenue for the quarter registered 3.89% growth at Rs. 4918.35 mn as compared to Rs. 4734.21 mn, when compared with the prior year period.


– During the quarter, EBIDTA is Rs. 1399.97 mn as against Rs. 1390.94 mn in the corresponding period of the previous year.


– During Q1 FY18, Profit before tax increased at Rs. 1171.08 mn as compared to Rs. 1141.40 mn in Q1 FY17.


– During Q1 F Y18, net profit rose by 1.76% and stood at Rs. 781.83 mn as against Rs. 768.30 mn in the corresponding quarter of previous year.


– EPS of the company stood at Rs. 2.51 during the quarter, as against Rs. 2.35 per share over previous year period.


– Digital Advertisement Revenue at Rs 77.1 mn, up by 18.1% from Rs 65.3 mn.


– Recognising Group’s leadership position in different fields of operations, various distinguished bodies like INMA, WAN IF RA, Abbys, ACEF, Golden Mikes, Limca etc. have bestowed 94 Awards upon the Group.


– Net Sales and Operating Profit of the company are expected to grow at a CAGR of 8% and 15% over 2016 to 2019E, respectively.


Outlook & Conclusion:

 

– At the current market price of Rs. 178.35, the stock P/E ratio is at 15.70 X F Y18E and 14.31 X F Y19E respectively.


– Earning per share (EPS) of the company for the earnings for FY18E and FY19E is seen at Rs. 11.36 and Rs. 12.46 respectively.


– Net Sales and PAT of the company are expected to grow at a CAGR of 8% and 15% over 2016 to 2019E respectively


– On the basis of EV/EBITDA, the stock trades at 8.84 X for F Y18E and 7.97 X for F Y19E.


– Price to Book Value of the stock is expected to be at 2.75 X and 2.31 X for F Y18E and F Y19E respectively.


– Hence, we say that, we are Overweight in this particular scrip for Medium to Long term investment.

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