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29 October 2010

DB Corp -Solid quarter despite Ranchi launch; retain BUY.:: Kotak Sec

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DB Corp (DBCL)
Media
Solid quarter despite Ranchi launch; retain BUY. DBCL reported strong 2QFY11
EBITDA at Rs951 mn (+14% yoy, -16% qoq) led by stronger-than-expected advertising
revenue at Rs2.27 bn (+18% yoy) versus our expectation of Rs2.2 bn. DBCL’s entry into
Ranchi/Jharkhand with (1) start-up expenses of Rs60 mn and (2) recurring expenses of
Rs30 mn were a key drag on financials. We retain our BUY rating with a revised target
price of Rs320 (Rs295 previously) on (1) continued strong traction in core operation and
(2) relatively fair valuations at 19X FY2012E valuations; fine-tuned estimates.

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