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Acquisition of Mid day would help Jagran to grow beyond the Hindi
newsprint business, thereby geographically de risking the business of the
company. We initiate a buy rating with a price target of Rs 147.
Investment Rationale
~ Dainik Jagran is the highest read newspaper in the world
~ Mid-day acquisition brings three language dailies
~ Sustainable Market growth
~ Advertisement Growth is driving profitability
~ Quoting at attractive Valuation
Company Description
Jagran Prakashan Limited is a media house of India, which
publishes Dainik Jagran. The Company publishes monthly
magazines Sakhi targeted at women and Josh targeted at career
oriented youth. The Company also publishes Jagran Varshiki, an
annual general knowledge digest and various national and state
statistical compilations. Jagran Engage provides specialized Out
of Home advertising services with a Pan-India footprint. Jagran
Solutions provides the line activities like promotional marketing,
event management and on ground activities throughout the
country. The Company has Hindi news portal in association with
Yahoo India, http://in.jagran.yahoo.com and the Company’s
division J9 provides internet video recording (IVR)/audio visual
research (AVR)/short messaging services (SMS) through its short
code service 57272
Valuation
At CMP, the stock trades at 15.3x FY12E EPS, The stock has
traded at an average forward multiple 19x in last year and 21.5x
since listing. Considering that JPL is the largest player in terms of
readership (for the past 14 IRS rounds), with better cost efficiency,
phased and planned expansion into other forms of media
businesses, and a wider portfolio (including Mid-day), we are
positive about its business model and believe it is well poised to
benefit from steady growth in the print media sector. We initiate
coverage on JPL with a BUY recommendation and a 12-month
target price of Rs147 (19.2x FY12E earnings).
India Equity Research Reports, IPO and Stock News
Visit http://indiaer.blogspot.com/ for complete details �� ��
Acquisition of Mid day would help Jagran to grow beyond the Hindi
newsprint business, thereby geographically de risking the business of the
company. We initiate a buy rating with a price target of Rs 147.
Investment Rationale
~ Dainik Jagran is the highest read newspaper in the world
~ Mid-day acquisition brings three language dailies
~ Sustainable Market growth
~ Advertisement Growth is driving profitability
~ Quoting at attractive Valuation
Company Description
Jagran Prakashan Limited is a media house of India, which
publishes Dainik Jagran. The Company publishes monthly
magazines Sakhi targeted at women and Josh targeted at career
oriented youth. The Company also publishes Jagran Varshiki, an
annual general knowledge digest and various national and state
statistical compilations. Jagran Engage provides specialized Out
of Home advertising services with a Pan-India footprint. Jagran
Solutions provides the line activities like promotional marketing,
event management and on ground activities throughout the
country. The Company has Hindi news portal in association with
Yahoo India, http://in.jagran.yahoo.com and the Company’s
division J9 provides internet video recording (IVR)/audio visual
research (AVR)/short messaging services (SMS) through its short
code service 57272
Valuation
At CMP, the stock trades at 15.3x FY12E EPS, The stock has
traded at an average forward multiple 19x in last year and 21.5x
since listing. Considering that JPL is the largest player in terms of
readership (for the past 14 IRS rounds), with better cost efficiency,
phased and planned expansion into other forms of media
businesses, and a wider portfolio (including Mid-day), we are
positive about its business model and believe it is well poised to
benefit from steady growth in the print media sector. We initiate
coverage on JPL with a BUY recommendation and a 12-month
target price of Rs147 (19.2x FY12E earnings).
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