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HT Media
The key takeaways from the HT Media management were projections for advertising
growth for the next two years of 15% in Delhi (after 22% growth in FY11) and 30% in
Mumbai (after 35% growth in FY11). Mint, the company's business paper, grew 65% in
FY11, and management expects to maintain 40% advertising growth during FY12 and
FY13. It expects to sustain the 35% advertising growth in Hindi advertising recorded in
FY11.
With newsprint stabilizing at USD740 since October and a turnaround in the radio
business, relatively faster growth in advertising would translate into a continuing
improvement in operating margins. Maintenance capex of INR650m in FY12 would
increase if HT Media expanded its radio business to new centres. Management has
expressed its intention to bid for Phase III licenses and it maintains its stand. With net
cash of INR3bn, the company is in a position to fund capex without dilutions.
We maintain our Buy rating and target price of INR210.
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
HT Media
The key takeaways from the HT Media management were projections for advertising
growth for the next two years of 15% in Delhi (after 22% growth in FY11) and 30% in
Mumbai (after 35% growth in FY11). Mint, the company's business paper, grew 65% in
FY11, and management expects to maintain 40% advertising growth during FY12 and
FY13. It expects to sustain the 35% advertising growth in Hindi advertising recorded in
FY11.
With newsprint stabilizing at USD740 since October and a turnaround in the radio
business, relatively faster growth in advertising would translate into a continuing
improvement in operating margins. Maintenance capex of INR650m in FY12 would
increase if HT Media expanded its radio business to new centres. Management has
expressed its intention to bid for Phase III licenses and it maintains its stand. With net
cash of INR3bn, the company is in a position to fund capex without dilutions.
We maintain our Buy rating and target price of INR210.
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